SEBI(ICDR) Amendment April 13, 2010

SEBI vide its Notification No. LAD-NRO/GN/2010-11/03/1104 amended the SEBI (ICDR) Regulations, 2009, the highlights of which are as follows:-

1. The definition of employee has been widened to include “ The employees of the holding company or subsidiary company or of that material associate(s) of the issuer whose financial statements are consolidated with the issuer’s financial statements as per Accounting Standard 21”– Regulation  2(1) (m)

2. Insertion of new Chapter XA regarding issue of specified securities by Small and Medium Enterprises:

1. The issuer is not required to file the draft offer document with SEBI
2. The issue should be 100% underwritten
3. Minimum number of allottees should not be less than 50
4. If the post issue face value of a listed issuer is less than 25 crore rupees , the issuer can migrate its specified securities to SME Exchange
5. If listed on SME exchange and post issue face value is more than 10 crore rupees  and upto 25 crore rupees  the issuer can migrate its specified securities to Main Board
6. Compulsory market making by Merchant Banker
2. Revision of  fees to be paid to SEBI in case of Rights Issue Schedule IV , Part A Clause (b)
3. Insertion of Form H, relating to additional certification to be given by Merchant banker regarding SME Exchange
4. Other amendments include correction of  drafting errors
5. Consequential amendments made in the following regulations also:-

SEBI (Stock Brokers and Sub-Brokers) Regulations, 1992

SEBI (Merchant Banker) Regulations, 1992

SEBI (Foreign Institutional Investors) Regulations, 1995

SEBI (Venture Capital Funds) Regulations, 1996
SEBI (SAST) Regulations, 1997

Present amendment made more focus on SME compliance which will emphasis more development to this part of economy as well.

Njoy readin..........