{"id":15273,"date":"2019-04-08T18:30:00","date_gmt":"2019-04-08T13:00:00","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=15273"},"modified":"2019-09-16T18:16:27","modified_gmt":"2019-09-16T12:46:27","slug":"sebi-issue-capital-disclosure-requirements-second-amendment-regulations-2019","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/sebi-issue-capital-disclosure-requirements-second-amendment-regulations-2019\/","title":{"rendered":"Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2019 for Startups"},"content":{"rendered":"<p class=\"has-drop-cap\">On 5<sup>th<\/sup>&nbsp;<g class=\"gr_ gr_5 gr-alert gr_gramm gr_inline_cards gr_disable_anim_appear Punctuation only-del replaceWithoutSep\" id=\"5\" data-gr-id=\"5\">April,<\/g> 2019, SEBI has notified the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Second <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Amendment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An &amp;quot;amendment&amp;quot; refers to the formal change or correction of a legal document, often involving additions, variations, or deletions to address irregularities or clarify points in an agreement.(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/amendment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Amendment<\/a>) Regulations, 2019. Further, SEBI has come up with relaxing norms for listing of new-age venture start-ups which operates in e-commerce, data analytics, biotechnology, and nanotechnology sectors to raise funds and get their shares traded on stock exchanges.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Securities-and-Exchange-Board-of-India-Issue-of-Capital-and-Disclosure-Requirements-Second-Amendment-Regulations-2019.png\" alt=\"Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2019\" class=\"wp-image-15274\" width=\"713\" height=\"223\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Securities-and-Exchange-Board-of-India-Issue-of-Capital-and-Disclosure-Requirements-Second-Amendment-Regulations-2019.png 956w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Securities-and-Exchange-Board-of-India-Issue-of-Capital-and-Disclosure-Requirements-Second-Amendment-Regulations-2019-300x94.png 300w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Securities-and-Exchange-Board-of-India-Issue-of-Capital-and-Disclosure-Requirements-Second-Amendment-Regulations-2019-768x240.png 768w\" sizes=\"(max-width: 713px) 100vw, 713px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Eligibility Criteria for <g class=\"gr_ gr_9 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins doubleReplace replaceWithoutSep\" id=\"9\" data-gr-id=\"9\">listing<\/g> of Issue Of Securities as per Securities and Exchange Board of India<\/strong><\/h2>\n\n\n\n<p>Any issuer or issuer company which is intensive in the\nuse of<\/p>\n\n\n\n<ul><li>technology,<\/li><li>information technology,<\/li><li>intellectual <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Property&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Property refers to the legal designation of ownership over valuable items or assets held by an individual or a business. This ownership grants the holder certain legal rights to use, consume,(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/property\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>property<\/a>, <\/li><li>data analytics, <\/li><li>biotechnology or <\/li><li>nano-technology <\/li><\/ul>\n\n\n\n<p>to provide\nproducts, services or business platforms with substantial value addition, shall\nbe eligible for listing on the Innovators&rsquo; Growth Platform.&nbsp;<\/p>\n\n\n\n<p>Provided that&nbsp;as on the date of filing of draft information\ndocument or draft offer document with the board:<\/p>\n\n\n\n<p>25 % of the pre-issue\ncapital of the issuer company for at least a period of 2 years, should have been held by:<\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/sebi-disclosure-of-auditors-of-listed-companies\/\" target=\"_blank\" rel=\"noopener noreferrer\">SEBI Proposed Strict Norms for Disclosure of Auditors of Listed Companies<\/a><\/mark>.<\/p><\/div>\n\n\n\n<ul><li>Qualified institutional buyers (QIBs); or<\/li><li>Family trust&nbsp;with net-worth of more than&nbsp;500 <g class=\"gr_ gr_5 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace\" id=\"5\" data-gr-id=\"5\">crore<\/g>, as per the last audited balance sheet; or<\/li><li>Accredited investors&nbsp;for the purpose of Innovators Growth Platform; or<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Securities-and-Exchange-Board-of-India-Issue-of-Capital-and-Disclosure-Requirements-Second-Amendment-Regulations-2019-1.png\" alt=\"\" class=\"wp-image-15275\" width=\"682\" height=\"542\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Securities-and-Exchange-Board-of-India-Issue-of-Capital-and-Disclosure-Requirements-Second-Amendment-Regulations-2019-1.png 646w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Securities-and-Exchange-Board-of-India-Issue-of-Capital-and-Disclosure-Requirements-Second-Amendment-Regulations-2019-1-300x239.png 300w\" sizes=\"(max-width: 682px) 100vw, 682px\"\/><\/figure>\n\n\n\n<ul><li>The following regulated entities:<\/li><li>Category III Foreign Portfolio Investor;<\/li><li>An entity which meets all the following criteria:<ul><li>It is a pooled investment fund with minimum assets under management of one hundred and fifty million USD;<\/li><li>Registered with a financial sector regulator in the jurisdiction of which it is a resident; <\/li><li>It is resident of a country whose securities <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a> regulator is a signatory to the International Organization of Securities Commission&rsquo;s Multilateral <a aria-label=\"Memorandum of Understanding (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/enterslice.com\/memorandum-of-understanding\" target=\"_blank\"><strong>Memorandum of Understanding<\/strong><\/a> or a signatory to Bilateral Memorandum of Understanding with the Board;<\/li><li>Moreover, it is not resident in a country identified in the public statement of Financial Action Task Force<\/li><\/ul><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issuer seeking listing of its Specified\nSecurities without making a Public Offer&nbsp;<\/strong><\/h2>\n\n\n\n<p>Firstly, he shall file a draft information document along with the necessary documents with the Board in accordance with these regulations along with the fee as specified in Schedule III of ICDR regulations. Moreover, the draft information document shall contain disclosures as specified for the draft offer documents in <g class=\"gr_ gr_42 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"42\" data-gr-id=\"42\">Securities<\/g> and Exchange Board of India  ICDR regulations as specified in Part A of Schedule VI.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Minimum Public Shareholding\nNorms and Minimum Offer Size<\/strong> <\/h2>\n\n\n\n<ul><li>The issuer shall be in compliance with minimum public shareholding requirements specified in the Securities Contracts (Regulation) Rules, 1957. <\/li><li>The minimum offer size shall be ten crore rupees<\/li><\/ul>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong>Particulars<\/strong>\n  <\/td><td>\n  <strong>Amount<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>Minimum\n  Offer Size<\/strong>\n  <\/td><td>\n  Rs.\n  10 Crore\n  <\/td><\/tr><tr><td>\n  <strong>Minimum\n  Application Size<\/strong>\n  <\/td><td>   Rs. 2 lakh and in multiples thereof   <\/td><\/tr><tr><td>\n  <strong>Minimum\n  Trading Lot<\/strong>\n  <\/td><td>\n  Rs.\n  2 lakh\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Minimum Number of Allottees<\/strong><\/h2>\n\n\n\n<p>The minimum number of allottees shall be\nat least&nbsp;<strong>50<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Allotment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An allotment is the systematic distribution of business resources, often pertaining to the distribution of shares during initial public offerings (IPOs) to underwriting firms or to new and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/allotment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Allotment<\/a> on a\nproportionate <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a><\/strong><\/h2>\n\n\n\n<p>The allotment to institutional investors\nas well as non-institutional investors shall be on a proportionate basis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Lock-in period<\/strong><\/h2>\n\n\n\n<p>The entire pre-issue capital of the\nshareholders shall be locked-in for a period of&nbsp;<strong>6 months<\/strong>&nbsp;from the date of allotment in case\nof listing pursuant to a public issue or date of listing in case of listing\nwithout a public issue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Migration to the main board<\/strong><\/h2>\n\n\n\n<p>An issuer that has listed its specified securities on a recognized stock exchange may at its option migrate to the main board of that recognized stock exchange after the expiry of three years from the date of <g class=\"gr_ gr_17 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar only-ins replaceWithoutSep\" id=\"17\" data-gr-id=\"17\">listing<\/g>. However, this must be subject to compliance with the eligibility requirements of the stock exchange.<\/p>\n\n\n\n<p>The\nnotification released by the SEBI can be read <a href=\"http:\/\/egazette.nic.in\/WriteReadData\/2019\/201764.pdf\">here<\/a>&nbsp;&nbsp;&nbsp; <\/p>\n\n\n\n<div class=\"read\"><p><b>Recommended Article:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/listed-companies\/\" target=\"_blank\" rel=\"noopener noreferrer\">Why is it important to know about the Regulatory Framework of Listed Companies<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On 5th&nbsp;April, 2019, SEBI has notified the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2019. Further, SEBI has come up with relaxing norms for listing of new-age venture start-ups which operates in e-commerce, data analytics, biotechnology, and nanotechnology sectors to raise funds and get their shares traded [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":15278,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,1599,1],"tags":[2181,20],"acf":{"service_id":"227"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Securities and Exchange Board of India (ICDR) Rules for Startups<\/title>\n<meta name=\"description\" content=\"SEBI has notified the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2019\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/sebi-issue-capital-disclosure-requirements-second-amendment-regulations-2019\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Securities and Exchange Board of India (ICDR) Rules for Startups\" \/>\n<meta property=\"og:description\" content=\"SEBI has notified the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2019\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/sebi-issue-capital-disclosure-requirements-second-amendment-regulations-2019\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-08T13:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-09-16T12:46:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/Securities-and-Exchange-Board-of-India.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"700\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Neelansh Gupta","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/IMG_20190305_185223.jpg","authorDescription":"Mr. Neelansh Gupta is a Legal Counsel having extensive in-depth knowledge of various laws.  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