SEBI Tweaks ICDR Norms, Underwriting Agreement now a Pre-requisite for IPO Filings
- Blog|News|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 25 May, 2023
Latest from Taxmann
Notification No. SEBI/LAD-NRO/GN/2023/130, Dated 23.05.2023
The SEBI has notified amendment in Regulation 40 and 136 of SEBI (ICDR) Regulations, 2018. Earlier, if the issuer was intending to make an IPO, other than through the book building process, and wishes to have the issue underwritten, it was required to appoint underwriters in compliance with SEBI (Underwriters) Regulations, 1993.
Now, as per the amended norms, issuer shall, prior to the filing of the prospectus, enter into an underwriting agreement with the merchant bankers or stock brokers registered with the Board to act as underwriters.
As per the amended norms, the Underwriting Agreement shall contain the maximum number of specified securities they shall subscribe to, either by themselves or by procuring subscription, at a predetermined price which shall not be less than the issue price, and shall disclose the fact of such underwriting agreement in the prospectus.
Further, the SEBI has also notified amendment in 10(A) of Part-A and 11(A) of Part-B-1 of Schedule VI of the ICDR Regulations. Schedule VI speaks about the Disclosures in the Offer Document, Abridged Prospectus and Abridged Letter of Offer.
Earlier, Schedule A only provided requirement to disclosure the Industry Overview. Now, as per the amended norms, if extract of any industry report is disclosed in the offer document, the complete industry report shall be provided as part of the material documents.
Further, the SEBI has notified amendment in clause 18(3) in Part A and clause 22(B) in Part B-1 of Schedule VI of the ICDR Regulations. Earlier, material contracts and material document were available for inspection.
Now, the SEBI has provided that the material contracts and material documents shall also be made available for inspection through online means.
Click Here To Read The Full Notification
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
CA | CS | CMA
