Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2010
No. LAD-NRO/GN/2009-10/26/190146. In exercise of the powers
conferred by Section 30 of the Securities and Exchange Board
of India Act, 1992 (15 of 1992), the Board hereby makes the
following regulations to amend the Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009, namely:-
1. (i) These regulations may be called the Securities and
Exchange Board of India (Issue of Capital and Disclosure Requirements)
(Second Amendment) Regulations, 2010.
(ii) These regulations shall come into force on the date
of their publication in the Official Gazette.
2. In the Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations, 2009 –
(i) in regulation 29, after clause (c), following clause shall
be inserted , namely:-
“(d) In case the issuer opts for the alternate method
of book building in terms of Part D of Schedule XI, the issuer
may offer specified securities to its employees at a price
lower than the floor price:
Provided that the difference between the floor price and
the price at which specified securities are offered to employees
shall not be more than ten per cent. of the floor price.”
(ii) in schedule XI, in Part D,-
(a) for clause (b), the following shall be substituted, namely:-
“(b) The issuer may mention the floor price in the red
herring prospectus or if the floor price is not mentioned
in the red herring prospectus, the issuer shall announce the
floor price at least one working day before opening of the
bid in all the newspapers in which the pre-issue advertisement
was released.”
(b) for clause (c), the following shall be substituted, namely:-
“(c) Qualified institutional buyers shall bid at any
price above the floor price.”
(c) for clause (e), the following shall be substituted, namely:-
“(e) Allotment shall be on price priority basis for
qualified institutional buyers.”
(d) for clause (f), the following shall be substituted, namely:-
“(f) Allotment to retail individual investors, non-institutional
investors and employees of the issuer shall be made proportionately
as illustrated in this Schedule.”
(e) for clause (h), the following shall be substituted, namely:-
“(h) Retail individual investors, non-institutional
investors and employees shall be allotted specified securities
at the floor price subject to provisions of clause (d) of
regulation 29.”
(f) for clause (i) , the following shall be substituted ,
namely:-
“(i) The issuer may:-
(A) place a cap either in terms of number of specified securities
or percentage of issued capital of the issuer that may be
allotted to a single bidder;
(B) decide whether a bidder be allowed to revise the bid upwards
or downwards in terms of price and/or quantity;
(C) decide whether a bidder be allowed single or multiple
bids.”
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