With reference to the SEBI (ICDR), Regulations, 2018, answer in brief (with reasons): Is there any mechanism for monitoring of utilization of IPO proceeds, if the issue size exceeds one hundred crore rupees.
CS Executive · Securities Laws and Capital Markets · PYQS · June 2024
With reference to the SEBI (ICDR), Regulations, 2018, answer in brief (with reasons): Is there any mechanism for monitoring of utilization of IPO proceeds, if the issue size exceeds one hundred crore rupees.
Answer & Explanation:
Yes, there is a mechanism for monitoring of utilization of IPO proceeds, if the issue size exceeds one hundred crore rupees. Regulation 41 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 states that if the issue size, excluding the size of offer for sale by selling shareholders, exceeds one hundred crore rupees, the issuer shall make arrangements for the use of proceeds of the issue to be monitored only by a credit rating agency registered with the SEBI. This shall not apply to an issue of specified securities made by a bank or public financial institution or an insurance company.
Topics: SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
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