RESTRICTION ON TRANSFERABILITY (LOCK-IN) OF PROMOTERS’ CONTRIBUTION, ETC. - Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
RESTRICTION ON TRANSFERABILITY (LOCK-IN) OF PROMOTERS’ CONTRIBUTION, ETC. - Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 Chapter XC LISTING ON INSTITUTIONAL TRADING PLATFORM
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Lock-in requirement secures pre-issue shareholdings for a prescribed period, allows pledging as loan collateral and sets transfer exceptions. The regulation requires a lock-in of the entire pre-issue capital for a prescribed period from allotment or listing, with exclusions for disclosed ... Summary
Lock-in requirement secures pre-issue shareholdings for a prescribed period, allows pledging as loan collateral and sets transfer exceptions.
The regulation requires a lock-in of the entire pre-issue capital for a prescribed period from allotment or listing, with exclusions for disclosed employee share schemes, venture capital/qualifying AIF/foreign venture capital holdings subject to a longer holding-period measured from purchase, and equity held continuously by non-promoters prior to a direct listing. Convertible securities and resultant equity are treated together for holding-period calculation. Promoter locked-in securities may be pledged as collateral to scheduled commercial banks or public financial institutions if pledged as a loan condition, remain transferable under the transfer regulation, and discretionary allotments follow anchor investor lock-in requirements.
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