SEBI (ICDR) THIRD AMENDMENT REGULATIONS, 2015
11 August 2015

SEBI has vide notification dated 11-08-2015 has issued SEBI (ICDR), THIRD AMENDMENT REGULATIONS, 2015 highlighting the following amendments: FAST TRACK ISSUE Dilutions: 1. The average Market Capitalisation required has now been reduced from 3000 crore to 1000 crore for public issue and 250 crore for right issue. 2. The Condition pertaining to compliance of equity listing agreement for a period of min. 3 years before reference date now has a carve out. Now, imposition of only monetary fines by Stock Exchange shall not be a ground for ineligibility for Fast Track Issue. Added Conditions: 1. The issuer or promoter or promoter group or director of the issuer has not settled any alleged violation of securities laws through the consent or settlement mechanism with the Board during 3 years immediately preceding the reference date. 2. In Right Issue, promoters and promoter group shall mandatorily subscribe to their rights entitlement and shall not renounce their rights except a) Renunciation within promoter group allowed; b) Renunciation to comply with condition of minimum public shareholding (Rule 19a of SCRA) can be done. 3. No suspension of equity shares should have been done as a disciplinary measure during 3 years immediately preceding the reference date. 4. The annualised delivery based trading turnover of the equity shares during 6 months immediately preceeding the month of the reference date has been atleast 10% of the weighted avg. no.of equity shared listed during these 6 months. 5.There should be no conflict of interest between lead merchant Banker and Issuer/its associate/ group. NET ISSUE PROCEEDS DISCLOSURES: 1. Net issue proceeds pending utilisation shall be deposited only in the scheduled commercial banks included in the Second Schedule of RBI Act. 2. In case of IDR, net issue proceeds pending utilisation shall be kept in a bank having a credit rating of ’A’ or above by an international credit rating agency and disclosure should be there in Prospectus/addendum to offer for Right Issue.


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