With reference to the SEBI (ICDR), Regulations, 2018, answer in brief (with reasons): Lock-in of specified securities held by the promoters in case of Initial Public Offer.
CS Executive · Securities Laws and Capital Markets · PYQS · June 2024
With reference to the SEBI (ICDR), Regulations, 2018, answer in brief (with reasons): Lock-in of specified securities held by the promoters in case of Initial Public Offer.
Answer & Explanation:
Regulation 16(1)(a) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 prescribes that the minimum promoters' contribution by the promoters shall be locked-in for a period of eighteen months (in case the majority of the issue proceeds is proposed to be utilized for capital expenditure, then the lock-in period shall be three years) from the date of allotment in the Initial Public Offer. Promoters' holding in excess of minimum promoters' contribution shall be locked-in for a period of six months (in case the majority of the issue proceeds is proposed to be utilized for capital expenditure, then the lock-in period shall be one year) from the date of allotment in the initial public offer.
Topics: SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
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