The Securities and Exchange Board of India (“SEBI”) has recently on September 11, 2018 published the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“2018 Regulations”).
The 2018 Regulations have been brought in to simplify the language, remove inconsistencies and update the references as per the Companies Act, 2013.
These Regulations will become effective after 60 days of the publication i.e. November 11, 2018.
Key Highlights of the 2018 Regulations are as follows:
- As per the 2018 Regulations, the threshold for roll over of non-convertible portion of partly convertible debt instruments has been changed from Rs. 50 Lakhs to Rs. 10 Crore.
- More than one warrant can now be attached to a specified security as per the 2018 Regulations.
- The average market capitalization of an issuer intending to go for a fast-track issue has been changed from Rs. 1000 Crore for a Public issue and Rs. 250 Crore for a Rights issue to Rs. 250 Crore overall in the 2018 Regulations therefore allowing a lot more companies to partake in fast-track issue.
- The 2018 Regulations allow an issuer of securities to make a bonus issue of equity shares from the securities premium account as well as the capital redemption reserve account in addition to the issue from the free reserves which was previously there.
Source: Securities and Exchange Board of India
