Amendment to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009

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Jul 01, 2017

Amendment to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009

Pursuant to its notification dated May 31, 2017, the key amendments introduced to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (‘ICDR Regulations’) are as follows:

i. The definition of Qualified Institutional Buyers (‘QIBs’) has been amended to include systemically important and RBI registered non-banking financial companies, having a net-worth of more than INR 500 crores (approx. USD 77 million), as per the last audited financial statements.

ii. Regulation 16, which deals with monitoring agencies, has been amended to provide that:

a. if the issue size, excluding the size of offer for sale (‘OFS’) by selling shareholders, exceeds INR 100 crores (approx. USD 15 million), the use of proceeds is to be monitored by a public financial institution / scheduled commercial bank identified as the banker of the issue in the offer document;

b. the monitoring agency will be required to submit quarterly reports to the issuer until utilization of at least 95% of the proceeds, excluding the proceeds under the OFS and amount raised for general corporate purposes; and

c. the issuer to publically disseminate such report on its website and to the stock exchanges within 45 days from the end of each quarter.

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