Preferential issue exemptions clarified; conditions on pricing, valuation and lock-in govern debt conversions and transfers. Regulation 70 exempts certain preferential issues from Chapter VII while preserving pricing and lock-in obligations in specified circumstances. Exemptions cover conversions of debt, court/tribunal-approved schemes, rehabilitation and RBI-guided debt restructuring, and allotments to specified financial entities, subject to conditions: RBI-prescribed pricing guidelines, price certification by two independent valuers (with transitional valuer definitions), compliance with Companies Act requirements including special resolution where required, prescribed lock-in periods, and specified enhanced disclosures for certain transferees.
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.
Preferential issue exemptions clarified; conditions on pricing, valuation and lock-in govern debt conversions and transfers.
Regulation 70 exempts certain preferential issues from Chapter VII while preserving pricing and lock-in obligations in specified circumstances. Exemptions cover conversions of debt, court/tribunal-approved schemes, rehabilitation and RBI-guided debt restructuring, and allotments to specified financial entities, subject to conditions: RBI-prescribed pricing guidelines, price certification by two independent valuers (with transitional valuer definitions), compliance with Companies Act requirements including special resolution where required, prescribed lock-in periods, and specified enhanced disclosures for certain transferees.
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