The Securities Exchange Board of India vide notification dated 22nd June 2020 has issued the Securities And Exchange Board of India (Issue of Capital And Disclosure Requirements) (Second Amendment) Regulations, 2020 providing the procedure of “Pricing in preferential issue of shares of companies having stressed assets”.
Under the new regulation Section (164 A) is inserted which states that “In case of frequently traded shares, the price of the equity shares to be allotted pursuant to the preferential issue shall not be less than the average of the weekly high and low of the volume weighted average price of the related equity shares quoted on a recognised stock exchange during the two weeks preceding the relevant date.”
Click here to read the Amendment.
