SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2021

Last updated: 16 August 2021

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The Securities and Exchange Board of India (SEBI) has issued the SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2021. These amendments, effective from their publication in the Official Gazette, modify existing regulations concerning capital issuance and disclosure. Key changes include a reduction in the lock-in period for certain shares following an Initial Public Offer (IPO) or Further Public Offer (FPO), with specific provisions for capital expenditure utilisation. Additionally, requirements for disclosing group company information have been adjusted.

SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 13th August, 2021 SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) (THIRD AMENDMENT) REGULATIONS, 2021 No. SEBI/LAD-NRO/GN/2021/45. -In exercise of the powers conferred under section 30 o

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FAQ :

The main purpose is to amend the existing Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, primarily by modifying lock-in periods and disclosure requirements for capital issuances.

For IPOs and FPOs, the general lock-in period has been reduced. For instance, a period of 'three years from the date of commencement of commercial production or date of allotment' is now 'eighteen months from the date of allotment in the initial public offer'. Similar reductions apply to Further Public Offers.

Yes, a proviso states that if the majority of issue proceeds (excluding the offer for sale portion) are to be used for capital expenditure, the lock-in period remains three years from the date of allotment in the IPO.

The amendments involve omitting certain references to 'group companies' in specific disclosure points and modifying the requirements for disclosing information about the top five group companies, including financial details and website hosting of information.

These regulations come into force on the date of their publication in the Official Gazette.