ISSUE OF SPECIFIED SECURITIES BY SMALL AND MEDIUM ENTERPRISESSecurities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
ISSUE OF SPECIFIED SECURITIES BY SMALL AND MEDIUM ENTERPRISESSecurities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
Lock-in requirement for specified securities restricts transferability of preferential allotments, with extended periods for promoters and shorter terms for others. The regulation imposes lock-in periods on specified securities allotted preferentially and on shares from exercise or conversion, differentiating extended ... Summary
Lock-in requirement for specified securities restricts transferability of preferential allotments, with extended periods for promoters and shorter terms for others.
The regulation imposes lock-in periods on specified securities allotted preferentially and on shares from exercise or conversion, differentiating extended lock-in for promoters/promoter group and shorter lock-in for other allottees, measured from trading approval. It caps promoter lock-in coverage for a portion of total capital, treats excess allotment under a shorter restriction, reduces lock-in for shares converted from already locked convertible securities, provides special treatment for securities issued under corporate debt restructuring and partly paid shares, requires continued lock-in where price recalculation obligations remain unpaid, and locks pre-preferential shareholding for a limited post-approval period.
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