Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2020

By INSOL India Editorial Team Posted On : August 18, 2020

On July 1, 2020, the Securities and Exchange Board of India (“SEBI”) notified the SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2020. By virtue of the same, regulation 164B was inserted to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Regulation 164B provides that the price of equity shares to be allotted pursuant to preferential issue in case of frequently traded shares, may be determined by either regulation 164 or regulation 164, as opted. The provision further provides for a minimum threshold for the prove of equity shares to be allotted along with a lock-in period of three years. The pricing method determined under 164B can be availed of until December 31, 2020.