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

SEBI has amended the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (“Regulations”) twice via SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2018, dated February 12, 2018 (“First Amendment”) and SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2018, dated May 31, 2018 (“Second Amendment”).

By the First Amendment, listed issuers are no longer required to comply with the minimum public shareholding norms. Prior to the amendment, a listed issuer was obligated to comply with minimum public shareholding norms to make a qualified institutional placement.

Pursuant to the Second Amendment, any preferential issue of equity shares made in terms of the rehabilitation scheme approved by the relevant adjudicating authorities under applicable insolvency laws, is exempt to comply with the Regulations. However, the lock-in provisions stated in the Regulations, would continue to apply to such preferential issue(s).