Sep 30, 2021

Amendments to the SCRR

SEBI has amended the Securities Contracts (Regulation) Rules, 1957 (‘SCRR’) with respect to the timelines on the minimum public shareholding (‘MPS’) requirement of 25% depending on the post-initial public offering (‘IPO’) market capitalization of the companies. The amendments are effective from June 18, 2021. The pre and post amendment provisions are summarized below:

 

  Pre-Amendment Post-Amendment
Post IPO Market Capitalisation (calculated at the IPO price) Minimum IPO Size Timelines to meet MPS Requirement of 25%

 

Minimum IPO Size Timelines to meet MPS Requirement of 25%

 

Up to ₹ 16 billion (approx. US$ 213 million) 25% of the post-IPO equity share capital By way of the IPO No change No change
Greater than ₹ 16 billion (approx. US$ 213 million) but up to ₹ 40 billion (approx. US$ 533 million) ₹ 40 billion (approx. US$ 533 million) Three years from the date of listing No change No change
Greater than ₹ 40 billion (approx. US$ 533 million) and up to ₹ 1,000 billion (approx. US% 13.3 billion) 10% of the post-IPO equity share capital Three years from the date of listing 10% of the post-IPO equity share capital Three years from the date of listing
Greater than ₹ 1,000 billion (approx. US% 13.3 billion) 5% of the post IPO market capitalisation

+

₹ 50 billion (approx. US$ 667 million)

•   10% to be achieved within two years from the date of listing

•   25% to be achieved within five years from the date of listing

 

TAGS

SHARE

DISCLAIMER

These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.