Promoters' contribution requirement: minimum promoters' stake and prescribed computation rules with mandated lock-in periods. Promoters must ensure a minimum promoters' contribution-generally 20% post-issue or 20% of the proposed issue for listed issuers-with specified securities excluded from computation (non-cash acquisitions, revaluation or bonus out of non-cash reserves, pledged or recent lower-priced acquisitions, private placements without consent). Convertible instruments may count subject to conversion-price and undertaking conditions. Promoters' contribution must be brought in before issue opening with CA certification and board resolution. Lock-in rules: minimum contribution locked for three years; excess contribution generally locked for one year; pre-issue capital of unlisted companies locked for one year, subject to enumerated exemptions. Pledging, inter-se transfers and non-transferable inscription are regulated to preserve lock-in integrity.
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 promoters' stake and prescribed computation rules with mandated lock-in periods.
Promoters must ensure a minimum promoters' contribution-generally 20% post-issue or 20% of the proposed issue for listed issuers-with specified securities excluded from computation (non-cash acquisitions, revaluation or bonus out of non-cash reserves, pledged or recent lower-priced acquisitions, private placements without consent). Convertible instruments may count subject to conversion-price and undertaking conditions. Promoters' contribution must be brought in before issue opening with CA certification and board resolution. Lock-in rules: minimum contribution locked for three years; excess contribution generally locked for one year; pre-issue capital of unlisted companies locked for one year, subject to enumerated exemptions. Pledging, inter-se transfers and non-transferable inscription are regulated to preserve lock-in integrity.
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