On August 13, 2021, the Securities and Exchange Board of India (SEBI) has issued the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2021 to further amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Key Highlights of the amendment:
- lock-in period of minimum promoters’ contribution has been reduced to 18 months from a period of three years from the date of commencement of commercial production or date of allotment in the initial public offer, whichever is later.
- Following proviso has been inserted in Regulation 16 and Regulation 115:
“Provided that in case the majority of the issue proceeds excluding the portion of offer for sale is proposed to be utilized for capital expenditure, then the lock-in period shall be three years from the date of allotment in the initial public offer.”
- Schedule VI, which specifies, DISCLOSURES IN THE OFFER DOCUMENT, ABRIDGED PROSPECTUS AND ABRIDGED LETTER OF OFFER has been amended.