SEBI issued a Notification on 22nd of June 2020 in the exercise of the power conferred under Section 30 of SEBI Act, 1992 to amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
Regulation 164(A) is inserted after existing Regulation 164.
“Pricing in the preferential issue of shares of companies having stressed assets”
Preferential Issue of shares by an issuer company having stressed assets, to any investor, not forming part of the promoter or promoter group, at a price determined as per pricing methodology of Regulation 164(A), shall be locked-in for a period of three years from the last date of trading approval.
Listed Companies coming with Prefrenencial issue under Regulation 164(A) of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 will not trigger the mandatory open offer to be made by such investors under Regulation 3 and 4 of the Securities and Exchange Board of India ( Substantial Acquisition of Shares & Takeover) Regulations, 2011.
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