The Securities and Exchange Board of India on 26th October 2021 has published the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2021.
The amendment is brought under regulation 6(3) which deals with eligibility requirement for an initial public offer in which the following explanation has been substituted.
Regulation 6(3)(ii) the net worth of the SR shareholder, as determined by a Registered Valuer, shall not be more than rupees one thousand crore.
Explanation: While determining the individual net worth of the SR shareholder, his investment/ shareholding in other listed companies shall be considered but not that of his shareholding in the issuer company.”
Further, as per regulation 6(3)(v), The SR equity shares have been issued prior to the filing of draft red herring prospectus and held for a period of at least three months prior to the filing of the red herring prospectus.
