Hope Ltd. makes an issue worth ₹ 125 crore to the public, out of which ₹ 20 crore was for sale to existing shareholders. Explain the provisions regarding the utilisation of proceeds and state whether any exception is ava

Regulations 41 and 137 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, prescribes the role of Monitoring agency to track the end use of proceeds of IPO. As per Regulation 'if the issue size excluding the size of offer for sale by selling shareholders exceeds ₹100 crore, the issuer shall ensure that the use of proceeds of the issue is monitored by a public financial institutions or by one of the scheduled commercial banks named in the offer document as a banker to the issuer'. In the given case, the issue exceeds ₹100 crore i. e 5 crore excluding 20 crore by selling shareholders. Hence, a monitoring agency should be appointed to track the issue proceeds. Further the monitoring agency shall submit its report to the issuer in the format specified in the ICDR Regulations, 2018 on a quarterly basis, till at least 95% of the proceeds of the issue excluding the proceeds raised for general corporate purposes, have been utilised. The Board of Directors and the management of the issues shall provide their comments on the findings of the monitoring agency. The issuer shall, within 45 days from the end of the each quarter, publicly disseminate the report of the monitoring agency by uploading the same on its website as well as submitting the same to the stock exchange(s) on which its equity shares are listed. However, the above mentioned rule is not applicable if the issuer is a bank or a public financial institution or an insurance company.