Professional Documents
Culture Documents
Objects of the Act: The basic objects of the Act are given as follows:
SEBI board may take such measures as it deems fit. These measures may
provide for the following
(e) Regulating business in the stock exchange any other securities market,
(i) Prohibiting fraudulent & unfair trade practices relating to the securities
market.
MANAGEMENT OF SEBI
(n) A Chairman. (2) Two members from amongst the officials of the
Finance & Law ministries of the central Govt. (3) Two other members
to be appointed by the central Govt.
GENERAL CONDITIONS: - For IPO & Follow on public offer & Rights issues..
(o) Any issuer offering specified securities through a public issue or rights
issue shall satisfy the conditions laid down in these regulations at the
time of filing draft offer documents with the board & at the time of filing
final offer document with the R.O.C. or designated exchange
(p) No issuer shall make a public issue or rights issue of specified securities
(q) If the issuer, any of its promoter, directors are debarred from
accessing the capital market by the board. Or on the order / directions of
the board.
(u) Unless it has fully paid up shares of existing partly paid shares or
forfeited.
(a) The issuer shall appoint one or more merchant bankers & shall also appoint
other intermediaries in consultations with the lead merchant banker to carry
out the obligations relating to the issue.
(b) The issuer shall enter in to agreement with lead merchant banker to comply
with the legal provisions to the issue. Further in case of A.S.B.A. process the
issuer shall take cognizance of the deemed agreement of issuer with Self
Certified Syndicate Banks. It means a banker to the issue registered with the
board which offers facilities of application supported by block amount(ASBA)
(4) In case of an issue through the book building process the issuer shall
appoint syndicate members at all collections centers.
(5) The lead merchant banker appointed by the issuer in the book built issue
shall act as the lead book runner.
FILING OF OFFER DOCUMENT:- (1) No issuer shall make (a) Public issue or (b)
a Rights issue where the aggregate value of the specified securities offered is Rs
50 lakhs or more unless a draft offer document has been filed with the board
through the lead merchant banker at least 30 days prior to the registering the
prospectus, red-herring prospectus or shelf prospectus with the R.O.C.
(2) The issuer& lead merchant banker shall carry out the changes/observations
made by the board before registering the prospectus with the R.O.C.
(d) A due diligence certificate from the debentures trustee in case of issue of
convertible debts. Instruments.
(e) A due diligence certificate after opening of the issue but before closing of the
issue for subscription
DRAFT DOCUMENT TO BE MADE PUBLIC:- The draft 0ffer document filed with
the board shall be made public for comments for at least 21 days from the
date of such filing by hoisting it on the web-sites of the board & Recognized
stock exchange where the specified securities are listed.
(a) NET TANGIBLE ASSET OF ATLEAST THREE CRPRE RUPEES: The issuer
company has at least 3 crore rupees in each of the preceding 3 full years of
which not more than 50% are held in monetary assets. If such monetary assts
are more than 50%, then the issuer has made firm commitments to utilize
such excess monetary assets in its business or project.
(b) TRACK RECORD DISTRIBUTABLE PROFITS FOR ATLEAST THREE OUT OF FIVE
YEARS PRECEDING.
(d) QUANTUM OF ISSUE;- The aggregate of the proposed issue & all previous
issues made in the same financial year in terms of issue size does not exceed
five times its pre-issue net worth as per the audited balance sheet of the
preceding financial year.
OR.
(c) The minimum post – issue face capital of the issuer is 10 crores or The
issuer undertakes to provide market making for at least two years from the
date listing of the specified securities, subject to the following;-
(i) The market makers offer buy % sell quotes for a minimum depth of 300
specified securities % ensure that the bid-ask spread for their quotes does
not exceed at any time 10%.
(ii) The inventory of the market maker as on the of allotment of the specified
securities shall be at least 5% of the proposed issue.(iii) I.P.O.GRADING;-
The issuer has obtained grading for the I.P.O.from at least one Credit
Rating Agency registered with the board.
(iii)