Pending QIP issue, its pricing & probable impact on share capital of the company is UPSI: SEBI
- Blog|News|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 14 July, 2022
Latest from Taxmann
SEBI Informal Guidelines ISD/OW/2022/16109/1, Dated: 13.04.2022
Shri Arvind Bajpai, CS of Deepak Nitrite Limited (DNL) sought an interpretative letter under the SEBI (Informal Guidance) Scheme, 2003 on the issue that whether pending QIP issue, it’s pricing, and probable impact on the share capital of the company, which is not yet known and shall be determined as per ICD regulations, be considered as Unpublished Price Sensitive Information (UPSI). SEBI clarified that the pending QIP issue, it’s pricing & probable impact on the share capital of the company, is UPSI.
Further, DNL sought clarification on another query by stating facts that that Board of directors of company have announced QIP issue of equity shares of DNL upto Rs. 2000 crore (QIP) vide there meeting held on December 22, 2021. The shareholders of company have approved the QIP by way of Special resolution passed by Postal Ballot on January 27, 2022.
The board of directors in there meeting have approved Unaudited Financial Statements (UFR) for the Quarter and nine months period ended December 31, 2021. The said UFR have been submitted to stock exchange within prescribed timeline.
The promoters/ promoter group wishes to purchase Equity shares of the company from open market in compliance with the code of conduct of the Company on Prohibition of Insider Trading.
In view of above, whether individual promoters which include the chairman & managing director and Executive director and CEO of the company or any member of the promoter group purchase shares of company from open market during pendency of QIP?
SEBI clarified chairman & managing director and Executive director and CEO of the company are “connected persons” and thereby deemed to be insiders. Further, based on facts and circumstances of each case, a member of the promoter group may deem to be “connected persons” or may be in possession of UPSI. Hence, member of promoter group may also be covered under definition of Insider.
Click Here To Read The Full Guidelines
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
