Bank of STV is contemplating to infuse the capital to meet the requirement of the BASEL Norms. In this context, bank is proposing to issue additional equity shares of ₹10,000 crore having a face value of ₹10 each via Qua
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2021
Bank of STV is contemplating to infuse the capital to meet the requirement of the BASEL Norms. In this context, bank is proposing to issue additional equity shares of ₹10,000 crore having a face value of ₹10 each via Qualified Institution Placement allotment (QIP). The bank has provided you the following inputs extracted from the latest audited Balance sheet as at 31st March, 2021: Sr No. Particulars Amount (in Crore) 1. Equity Share Capital of ₹ 10 each 20,000 2. Reserve and Surplus 10,000 3. Long Term Borrowings 40,000 4. Current Liabilities & Provisions 20,000 In the light of the relevant provisions of the SEBI (ICDR) Regulations, 2018, advise on the following aspects: Whether Bank would be eligible to raise this amount of funds through QIP?
Answer & Explanation:
As there is no limit provided under SEBI (ICDR) Regulations, 2018 like its erstwhile ICDR regulations. Therefore, the Bank would be eligible to raise this amount.
Topics: SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
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