SIGNIFICANT CHANGES REFERRED TO IN PARA 4 OF THIS CIRCULAR Sr. Subject Matter No. 1. Exemption from eligibility norms for making an IPO 2. Debarment Provision under the rescinded Guidelines Exemption available to banking company, corresponding new bank and infrastructure company. Company prohibited from making an issue of securities if it had been prohibited from accessing the capital market under any order or direction passed by the Board. Provision under the ICDR Regulations Exemption removed. Eligibility norms made applicable uniformly to all types of issuers. Issuer not to make public issue or rights issue of specified securities if: (a) the issuer, any of its promoters, promoter group or directors or persons in control of the issuer are debarred from accessing the capital market by the Board; (b) if any of the promoters, directors or persons in control of the issuer was or also is a promoter, director or person in control of any other company which is debarred from accessing the capital market under any order or directions made by the Board. Provided for.
3. 4. 5. 6.
Offer for sale by listed companies OTCEI Issues and E-IPO Firm allotment in public issues Reservation on competitive basis in public issues
Contained in Chapter XIV and Omitted. Chapter XI A. Permitted. Omitted. (a) For Indian and multilateral (a) Omitted. development financial institutions, Indian mutual funds, foreign institutional investors and scheduled banks. (b) For shareholders of the (b) For shareholders (other than
promoters) in respect of listed promoting companies in promoting companies, in case the case of a new of a new issuer and listed group company and shareholders companies, in case of an of group companies in the existing issuer. case of an existing company. Book building Book building process 75% book building route omitted. process through 75% or 100% of issue size.
Allotment/ refund period in public issues Disclosure of price or price band Transfer of surplus money in Green Shoe Option (GSO) Bank Account Issue period for Infrastructure companies in public issues Currency of financial statements disclosed in the offer document
30 days for fixed price issues and 15 days for book built issues. Required in draft prospectus in case of fixed price public issues. Surplus money to be transferred to Investor Protection Fund of Stock Exchanges.
15 days for both fixed price and book built issues. Not required to be disclosed in draft prospectus. Surplus money to be transferred to Investor Protection and Education Fund (IPEF) established by the Board.
21 days, as against 10 days Uniform period of 10 days for all for other issues. types of issuers.
Definition “Key Management Personnel” Disclosure on Not provided. pledge of shares by promoters Extent of Not explicit.
Particulars as per audited Government and non-government financial statements not to be issuers treated at par. more than 6 months old from the issue opening date for all issuers, except Government companies. Defined. of Not defined.
Where 100% of the offer through
underwriting obligation 16. The term “Financial Financial open to institution as a Institution” interpretation. monitoring agency Definition of Includes permanent “employee” employee/ director of subsidiary or holding company of the issuer. Restrictions on If issue opening and closing advertisements advertisement contained highlights, then the advertisement required to contain risk factors. Forfeiture money unexercised warrants preferential issues of Open to interpretation. on in
offer document is underwritten, underwriting obligations shall be for the entire amount underwritten. The term “financial Institution” replaced by “public financial institution or a scheduled commercial bank”. Excludes permanent employee/ director of subsidiary or holding...
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