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#Doyouknow? 20 key aspects about issue of Securities/ SEBI and RBI

Interpreted by CS Pranit Ponkshe.

  1. The Limits of 50 % of Net Tangible Assets held in monetary assets in case of IPO through Offer for sale is not applicable.
  2. If the total/aggregate value of specified securities in case of Right issue is 50 lakhs or more then only SEBI (ICDR) Regulations, 2009 is applicable.
  3. The Anchor Investor should make an application for a value of at least Rs. 10 crore in the public issue.
  4. One-third of the anchor investor portion shall be reserved for domestic mutual funds in case of IPO.
  5. The Merchant Banker is required to have a minimum networth Rs. 5 Cr. (Five Crore).
  6. A Retail Investor can bid in a book-built issue for a maximum value of Rs.1 lakh.
  7. In case of a composite issue, promoters’ contribution shall be either 20% of the proposed issue size or 20% of the post-issue capital.
  8. Underwriting Activity is not allowed for Category IV Merchant Banker.
  9. Forward contracts are traded Over the Counter (OTC).
  10. Initial Listing fees under equity segment of BSE = Rs. 20,000.
  11. If the Company is making public/rights issues are required to deposit 1% of that issue amount with the Designated Stock Exchange before opening of issue.
  12. The post-issue paid up capital of the company shall be at least Rs. 3 crore in case new listing at BSE under SME.
  13. The minimum application / trading lot size shall be minimum of Rs. 1,00,000/- under SME Listing.
  14. Sub-brokers are not allowed to register in commodity derivatives market.
  15. An Investor may have a single password for all web complaints to be filed on SEBI SCORES.
  16. The certificate of registration of Alternate Investment Fund shall be valid upto the Winding up.
  17. Banks cannot refuse to accept outstation cheques deposited for collection / refuse to offer its products to customers.
  18. External Commercial Borrowing is not allowed for Import of Services.
  19. External Commercial Borrowing cannot be availed for/as contribution/ making contribution in the Limited liability partnership.
  20. The Domestic Venture Capital Funds registered with SEBI can invest in equity / equity linked instruments of off-shore venture Capital Funds subject to an total limit of USD 500 million.

 

 

Disclaimer:- This File is only for Knowledge Sharing Purpose. Author has no responsibility for Impact & Consequences of this Information. The Author is not directly or indirectly liable for any damage due to the above information.

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