Sebi icdr clause 26

IPO 2242 views 3 replies

Praveen Pundit

Manager

34 Points Joined June 2012

I would be highly grateful if anyone could explain Regulation 26 (e) of SEBI (ICDR) , 2009 with an example

As per the SEBI (ICDR) Regulations 2009, vide Regulation 26 (d) & (e), a listed Company shall
be eligible to make a public issue of equity shares or any other security which may be converted
into or exchanged with equity shares at a later date provided

(d) the aggregate of the proposed issue and all previous issues made in the same financial
year in terms of issue size does not exceed five times its pre-issue net worth as per the
audited balance sheet of the preceding financial year;

(e) if it has changed its name within the last one year, at least fifty per cent. of the revenue
for the preceding one full year has been earned by it from the activity indicated by the
new name.

I am confusd abt the wordings used in the above clause.. Plz explain with a practical example.

Thanks

Replies (3)

CA. Roopali Kadam

Jobs on assignment basis.

1474 Points Joined December 2009

(e) if it has changed its name within the last one year,

* at least fifty per cent. of the revenue for the preceding one full year

* has been earned by it from the activity indicated by the new name.

My understanding is

Say the name XYZ Services Ltd is changed to XYZ Traders Ltd. Where initialy they were into just providing services for regular maintenance of electronic goods Eg. Computer or AC and now it mainly does trading activities.

now revenue from last full year from newly started trading activities should be atleast 50%

Do wait for more replies.