Amendment to ICDR Regulations:
“Promoter Group”
&
“Lock-in Period” 

PUBLISHED ON: 13-09-2021

SEBI has revised the Issue of Capital and Disclosure Requirements, Regulations, 2018 (“ICDR Regulations”), available here. The key changes are set out hereunder :

 

• Definition of  “Promoter Group” has been revised to delete the following:

• Any body corporate in which a group of individuals or companies or combinations thereof acting in concert, which hold 20% or more of the equity share capital in that body corporate, and such group of individuals or companies or combinations thereof also holds 20% or more of the equity share capital of the issuer and are also acting in concert.

 

• Lock-in period has been relaxed for promoters and other shareholders:

• Minimum promoters’ contribution to be locked-in for 18 months from the date of allotment instead of 3 years, in case of initial public offer (IPO) and further public offer (FPO). 
• In case of promoter’s holding over the minimum promoter’s contribution to be locked in for 6 months instead of 1 year, in case of IPO and FPO.  
• In case of shareholders other than the promoters, the entire pre-issue capital to be locked-in for a period of 6 months from the date of allotment instead of 1 year, in case of IPO. 
• In case of partly-paid securities in an FPO, the lock-in would end on expiry of 18 months instead of 3 years.