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<h1>SEBI Regulations: Lock-In Periods for Preferential Securities and Convertible Shares Explained</h1> The Securities and Exchange Board of India (SEBI) regulations mandate that securities issued on a preferential basis to promoters or their groups are locked-in for three years from the date of trading approval, with a cap of 20% of the issuer's total capital. Any excess is locked-in for one year. For non-promoter groups, the lock-in period is one year. Convertible securities reduce the lock-in by the duration already locked. Equity shares from corporate debt restructuring are locked for one year, and partly paid shares are locked until fully paid. Pre-preferential shares are locked for six months from trading approval.