Promoters' contribution requirement: minimum promoter stake and funding, escrow timing, and rules for convertible securities. Regulation 32 sets the minimum promoters' contribution for public and composite issues: generally twenty per cent of post-issue capital or of the proposed issue size, with limited alternative investment fund support for shortfalls. Convertible securities may satisfy the requirement by subscription or equity on conversion, subject to pre-determined conversion pricing and weighted average price rules. Promoters must deposit the contribution in an escrow at least one day before issue opening, disclose prior use if already utilised, and comply with staged funding for very large contributions; computation is on a post-issue expanded capital basis.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Promoters' contribution requirement: minimum promoter stake and funding, escrow timing, and rules for convertible securities.
Regulation 32 sets the minimum promoters' contribution for public and composite issues: generally twenty per cent of post-issue capital or of the proposed issue size, with limited alternative investment fund support for shortfalls. Convertible securities may satisfy the requirement by subscription or equity on conversion, subject to pre-determined conversion pricing and weighted average price rules. Promoters must deposit the contribution in an escrow at least one day before issue opening, disclose prior use if already utilised, and comply with staged funding for very large contributions; computation is on a post-issue expanded capital basis.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
