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. Recently, one of the promoter is
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. Recently, one of the promoter is declared as wilful fugitive offender.
Answer & Explanation:
Eligibility: Not Eligible Reason: As per Regulation 5(1)(c) and Regulation 5(1)(d) 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 or any of its promoters or directors is a wilful defaulter or a fraudulent borrower or a fugitive economic offender. Since one of the promoters has recently been declared a wilful fugitive offender, the entity is not eligible to make an initial public offer.
Topics: Issue of Capital and Disclosure Requirements (ICDR)
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