Executive Summary:
This document contains the Securities and Exchange Board of India (SEBI) regulations amending the Issue of Capital and Disclosure Requirements Regulations, 2018. It outlines changes to allocation procedures in net offer categories and adjustments to disclosure requirements concerning increases or decreases in issue size. These regulations take effect upon publication in the Official Gazette on December 31, 2018.
Key Points / Main Content:
Amendments to Issue of Capital and Disclosure Requirements:
* These regulations are called the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Amendment Regulations, 2018.
* The regulations came into force on December 31, 2018.
Regulation 253 Amendments:
* The Explanation to Regulation 253 is omitted.
* Regulation 253 is renumbered as subregulation 1.
* Subregulation 2 is inserted, specifying allocation in net offer categories for issues not made through book building:
* A minimum of 50% must be allocated to retail individual investors.
* The remaining portion is allocated to individual applicants other than retail investors and other investors, including corporate bodies or institutions.
* Unsubscribed portions can be reallocated between the above categories.
* If retail investors are entitled to more than 50% on a proportionate basis, they should be allocated that higher percentage.
Schedule XVI, Clause 1 Amendment:
* Subclause f is substituted, regarding increases or decreases:
* For fresh issues: any increase or decrease in estimated issue size by more than 20%.
* For offer for sale: any increase or decrease in shares offered or estimated issue size by more than 50%.
* For combined issues: respective limits apply.
Impact Analysis:
Issuers:
* Impact: Issuers must adhere to the revised allocation percentages for retail investors in issues not made through book building and comply with adjusted disclosure requirements for changes in issue size.
* Action Required: Update issuance procedures and disclosure documentation to reflect the new regulations.
Investors (Retail and Non-Retail):
* Impact: Retail investors are guaranteed a minimum allocation of 50% in certain issues, potentially increasing their access to investment opportunities. Non-retail investors face revised allocation rules.
* Action Required: Understand the new allocation rules and adjust investment strategies accordingly.
Securities and Exchange Board of India (SEBI):
* Impact: SEBI is responsible for enforcing the amended regulations.
* Action Required: Monitor compliance with the new regulations and address any violations.
Key Entities Referenced
Mumbai, Maharashtra: The city in which the SEBI notification was issued.
Securities and Exchange Board of India (SEBI): A regulatory body for securities market in India.
Securities and Exchange Board of India Act, 1992: The Act of the Indian Parliament that established the Securities and Exchange Board of India (SEBI).
Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018: A set of regulations by SEBI concerning the issuance of capital and disclosure requirements.
Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Amendment Regulations, 2018: Amendments made to the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018.
Official Gazette: The official government publication where regulations are published.
Ajay Tyagi: The Chairman of SEBI during the time of notification.
New Delhi, Delhi: Location of Government of India Press
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EXTRAORDINARY
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PART III—Section 4
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PUBLISHED BY AUTHORITY
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No. 556] NEW DELHI, MONDAY, DECEMBER 31, 2018/PAUSHA 10, 1940
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििििूूूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)
अअअअििििधधधधससससचचूूचचूू ननननाााा
मु(cid:3)बई, 31 (cid:6)दस(cid:3)बर, 2018
भभभभााााररररततततीीीीयययय (cid:1)(cid:1)(cid:1)(cid:1)ििििततततभभभभििििूूूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:9)(cid:9) (cid:9)(cid:9)
((((पपपपजजूँूँजजूँूँ ीीीी ककककाााा ििििननननगगगगमम(cid:9)(cid:9)मम(cid:9)(cid:9) नननन ((((इइइइ(cid:14)(cid:14)(cid:14)(cid:14)यययय))ूू))ूू औऔऔऔरररर (cid:1)(cid:1)(cid:1)(cid:1)ककककटटटटीीीीककककररररणणणण अअअअपपपपे(cid:24)े(cid:24)े(cid:24)े(cid:24)ााााएएएए]]ँँ]]ँँ ((((ससससशशंंशशंं ोोोोधधधधनननन)))) ििििववववििििननननययययमममम,,,, 2222000011118888))))
सससस..ंं..ंं ससससबबेेबबेे ीीीी////एएएएलललल....एएएए....डडडडीीीी....----एएएएनननन....आआआआरररर....ओओओओ....////जजजजीीीी....एएएएनननन....////2222000011118888////55557777....————बोड,(cid:12) भारतीय (cid:13)ितभिू त और िविनमय बोड (cid:12) अिधिनयम,
1992 (1992 का 15) क(cid:19) धारा 30 के अधीन (cid:13)द(cid:20) शि(cid:22)य(cid:24) का (cid:13)योग करत े (cid:26)ए एत(cid:28)ारा भारतीय (cid:13)ितभूित और िविनमय
बोड (cid:12) [पूँजी का िनग(cid:12)मन (इ यू) और (cid:13)कटीकरण अपे’ाएँ] िविनयम, 2018 का सशं ोधन करने के िलए िन)िलिखत िविनयम
बनाता ह,ै अथा(cid:12)त:्-
1. इन िविनयम(cid:24) को भारतीय (cid:13)ितभिू त और िविनमय बोड (cid:12)[पूँजी का िनगम(cid:12) न (इ यू) और (cid:13)कटीकरण अपे’ाए]ँ
(संशोधन) िविनयम, 2018 कहा जा सकेगा ।
2. वे राजप0 म1 उनके (cid:13)काशन क(cid:19) तारीख को (cid:13)व(cid:20)ृ (लाग)ू ह(cid:24)गे ।
3. भारतीय (cid:13)ितभिू त और िविनमय बोड (cid:12) [पूँजी का िनग(cid:12)मन (इ यू) और (cid:13)कटीकरण अपे’ाएँ] िविनयम, 2018
म1,-
I. िविनयम 253 के 4प5ीकरण का लोप हो जाएगा;
II. िविनयम 253 को उसके उप-िविनयम (1) के 6प म 1 स8ं या(cid:6)ं कत (cid:6)कया जाएगा और इस (cid:13)कार स8ं या(cid:6)ं कत
उप-िविनयम (1) के प9ात्, िन)िलिखत उप-िविनयम अंतः4थािपत (cid:6)कया जाएगा, अथात(cid:12) ,्-
7674 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
“(2) बही-िनमाण(cid:12) (cid:13)(cid:6);या के मा<यम स े न लाकर (cid:6)कसी अ=य मा<यम स े लाए जान े वाले िनग(cid:12)म (इ यू) के
मामले म1, शु> (cid:13)4ताव संबधी वग(cid:12) म1 आबंटन इस (cid:13)कार (cid:6)कया जाएगा:
(क) छोटे ?ि(cid:22)गत िनवेशक(cid:24) को =यूनतम पचास (cid:13)ितशत; और
(ख) शेष:
(i) छोटे ?ि(cid:22)गत िनवेशक(cid:24) से िभ@ ?ि(cid:22)गत आवेदक(cid:24) को; और
(ii) अ=य िनवेशक(cid:24) को [िजनम1 िनगिमत िनकाय (कारपोरेट बॉडी) या सं4थाए ँ शािमल ह]B,
(cid:6)फर भले ही उ=ह(cid:24)न े (cid:6)कतनी भी िनधाF(cid:12) रत (cid:13)ितभिू तय(cid:24) (िसGयूFरटीज़) के िलए आवेदन
(cid:6)कया हो;
परंत ु यह (cid:6)क य(cid:6)द खंड (क) या खंड (ख) म 1 उिIलिखत वगJ म 1स े (cid:6)कसी भी वग (cid:12)के अंतग(cid:12)त आबंटन परू ा न (cid:26)आ हो, तो
अ=य वग(cid:12) म 1आवेदक(cid:24) को आबंटन (cid:6)कया जा सकेगा ।
(cid:28)(cid:28)(cid:28)(cid:28)पपपप(cid:29)(cid:29)(cid:29)(cid:29)ीीीीककककररररणणणण.... –––– उप-िविनयम (2) के (cid:13)योजनाथ,(cid:12) य(cid:6)द छोटे ?ि(cid:22)गत िनवशे क संबंधी वग (cid:12) आनुपाितक आधार पर
िनगम(cid:12) के आकार (इ यू साइज़) के पचास (cid:13)ितशत से अिधक का हकदार हो, तो छोटे ?ि(cid:22)गत िनवेशक(cid:24) को उतने अिधक
(cid:13)ितशत का आबंटन कर (cid:6)दया जाएगा ।”
III. अनसु ूची-XVI म,1 खंड (1) म,1 उप-खंड (च) के िलए, िन)िलिखत उप-खंड (cid:13)ित4थािपत हो जाएगा, अथा(cid:12)त,्-
“(च) कोई विृ > या कमी:
(i) नए िनग(cid:12)म के मामल े म1: िनगम(cid:12) के अनमु ािनत आकार म1 िनग(cid:12)म के अनमु ािनत आकार के बीस
(cid:13)ितशत स ेअिधक क(cid:19) कोई वृि> या कमी; या
(ii) िव;य के िलए (cid:13)4ताव (ऑफर फॉर सेल) के मामल े म:1 िव;य के िलए (cid:13)4तािवत शेयर(cid:24) क(cid:19) स8ं या
या िनगम(cid:12) के अनमु ािनत आकार म1 पचास (cid:13)ितशत स ेअिधक क(cid:19) कोई वृि> या कमी; या
(iii) उस िनगम(cid:12) के मामले म,1 िजसम1 नया िनगम(cid:12) तथा िव;य के िलए (cid:13)4ताव साथ-साथ हो: उपरो(cid:22)
संबंिधत सीमाएँ लागू ह(cid:24)गी ।”
अजय Kयागी, अ<य’
[िवLापन-III/4/असाधारण/473/18]
पाद FटMपण :
1. भारतीय (cid:13)ितभिू त और िविनमय बोड (cid:12) [पूँजी का िनगम(cid:12) न (इ यू) और (cid:13)कटीकरण अपे’ाए]ँ िविनयम, 2018,
सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2018/31 Nारा, 11 िसत(cid:3)बर, 2018 को भारत के राजप0 म 1(cid:13)कािशत
(cid:26)ए थ े।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 31st December, 2018
Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements) (Aamendment) Regulations, 2018
No. SEBI/LAD-NRO/GN/2018/57.—In exercise of the powers conferred under section 30 of the Securities
and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to
amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,
2018, namely:-¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
1. These Regulations may be called the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) (Amendment) Regulations, 2018.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018, -
I. The Explanation to Regulation 253 shall be omitted;
II. Regulation 253 shall be numbered as sub-regulation (1) thereof and after sub-regulation (1) so numbered, the
following sub-regulation shall be inserted, namely, -
“(2) In an issue made other than through the book building process, the allocation in the net
offer category shall be made as follows:
(a) minimum fifty per cent. to retail individual investors; and
(b) remaining to:
(i) individual applicants other than retail individual investors; and
(ii) other investors including corporate bodies or institutions, irrespective of the
number of specified securities applied for;
Provided that the unsubscribed portion in either of the categories specified in clauses (a) or (b) may be
allocated to applicants in the other category.
Explanation. - For the purpose of sub-regulation (2), if the retail individual investor category is entitled
to more than fifty per cent. of the issue size on a proportionate basis, the retail individual investors shall
be allocated that higher percentage.”
III. in Schedule XVI, in Clause (1), for sub-clause (f), the following sub-clause shall be substituted, namely,-
"(f) Any Increase or Decrease:
(i) In case of a fresh issue: any increase or decrease in estimated issue size by more than twenty per
cent. of the estimated issue size; or
(ii) In case of an offer for sale: any increase or decrease in either the number of shares offered for
sale or the estimated issue size, by more than fifty per cent.; or
(iii) In case of an issue comprising of both fresh issue and offer for sale: the respective limits as
above shall apply."
AJAY TYAGI, Chairman
[ADVT.-III/4/Exty./473/18]
Footnote:
1. The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 were published in the Gazette of India
on 11th September, 2018 vide No. SEBI/LAD-NRO/GN/2018/31.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.