The Securities and Exchange Board of India in its notification dated 23rd September 2019 has published the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2019.
The following amendments are brought under SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018:
- In Regulation 2(1)(oo)(iii); (pp)(v); (ss)(ii); Regulation 283(1)(IV)(a); Schedule XIII, Part A, in clause 10, in sub-clause k where the words and symbols “foreign portfolio investor other than Category III foreign portfolio investor” shall be substituted with the words “foreign portfolio investor other than individuals, corporate bodies and family offices”.
- A new PART V has been inserted related to “migration to the main board”, which grants companies listed on the innovators growth platform an option to trade under the regular category of the main board of the stock exchange based on fulfilling the given conditions. The securities must be listed for a minimum period of 1 year and must have minimum 200 shareholders at the time of making the application. Also, the company’s director or promoter cannot be the director or promoter of any other company.
- Eligibility :The company to trade under the regular category of the main board of the stock exchange must have:
- a net assets of at least 3 crore rupees
- average operating profit must be at least 15 crore rupees
- net worth for the preceding 3 full year shall be 1 crore.
4. Minimum Promoters Contribution: The promoters of the company shall hold at least twenty per cent of the total capital, provided that in case the total capital held by the promoters is less than twenty per cent, alternative investment funds or foreign venture capital investors or scheduled commercial banks or public financial institutions or insurance companies registered with the Insurance Regulatory and Development Authority of India may contribute to meet the shortfall in minimum contribution as specified, subject to a maximum of ten per cent of the total capital without being identified as a promoter.
5. Lock in Period: The minimum promoter’s contribution shall be in lock in period of 3 years.
Click here to read the notification.
