Amendments to the SCRR

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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:

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%
	Pre-Amendment		Post-Amendment
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)	10% of the post-IPO equity share capital	Three years from the date of listing	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

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