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Are there any mandatory provisions which an issuer is expected to comply before making an issue?
Are there any mandatory provisions which an issuer is expected to comply before making an issue?
Anjana
Answered on February 17,2020
Answered on February 17,2020
Yes, there are mandatory provisions which an issuer is expected to comply before making an issue w.r.t. Minimum Promoter’s contribution and lock?in period:
- Public issue by an Unlisted Issuer: Promoters shall contribute not less than 20% of the post-issue capital which should be locked in for a period of 3 years. The remaining pre-issue capital of the promoters should also be locked in for a period of 1 year from the date of listing.
- Public issue by a Listed Issuer: Promoters shall contribute not less than 20% of the post-issue capital or 20% of the issue size.
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