Whether these entities are eligible or not to make initial public offer ? Answer with reasons in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The promoters' group was earlier
CS Executive · Securities Laws and Capital Markets · PYQS · June 2023
Whether these entities are eligible or not to make initial public offer ? Answer with reasons in accordance with the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The promoters' group was earlier debarred from accessing the capital market by the SEBI and the period of debarment is already over on the date of filing of the DRHP with the SEBI.
Answer & Explanation:
Eligibility: Eligible Reason: As per Regulation 5(1)(a) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, an issuer shall not be eligible to make an initial public offer if the issuer, any of its promoters, promoter group, or directors are debarred from accessing the capital market by the Board. However, in this case, the period of debarment for the promoters' group is already over on the date of filing the Draft Red Herring Prospectus (DRHP) with SEBI. Therefore, the entity is eligible to make an initial public offer.
Topics: Issue of Capital and Disclosure Requirements (ICDR)
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