Ready Reckenor for SME IPO by CS Rajesh Lachhwani


SEBI has issued SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2018 which shall come into force on the 60th day from the date of its publication in the Official Gazette

Notification – 11.09.2018

The New ICDR has been made in a compiled manner ie All the Topics of SME ipo are covered under one roof. In ICDR 2009 , chapter XB has to be referred with main board or general regulations in case of absence of regulations in Chapter XB. Further reference to such chapters were also provided. However the same is streamlined under one header. Efforts has been taken to compare the regulation number . Please find attached the same as below:

 

Sr No

Regulation no of ICDR 2009

Regulation no of ICDR 2018

1.      

Chapter XB

CHAPTER IX

2.      

-

228 Entities not eligible to make an initial public offer ^

3.      

106 M APPLICABILITY

229. Eligibility requirements for an initial public offer $

4.      

-

230 General condition

5.      

23 Issue of convertible debt instruments for financing.

231 ISSUE OF CONVERTIBLE DEBT INSTRUMENTS AND WARRANTS

6.      

20 Additional requirements for issue of convertible debt instruments.

232 Additional requirements for issue of convertible debt instruments

7.      

22 Conversion of optionally convertible debt instruments into equity share capital

233 Conversion of optionally convertible debt instruments into equity share capital

8.      

23 Issue of convertible debt instruments for financing

234 Issue of convertible debt instruments for financing

9.      

4(3) General conditions.

235 Issue of warrants

10.   

32 Minimum promoters’ contribution

236 Minimum promoters’ contribution

11.   

33 Securities ineligible for minimum promoters’ contribution

237 Securities ineligible for minimum       promoters’

contribution

12.   

36 Lock-in of specified

securities           held      by promoters.

238       Lock-in  of specified securities     held      by            the promoters

13.   

37   Lock-in   of specified

securities held by persons other than the promoters

239       Lock-in  of         specified

securities held by persons other than the promoters

14.   

38 Lock-in of specified securities lent to stabilising agent under

green shoe option.

240 Lock-in of specified securities lent to stabilising agent under the green shoe

option

15.   

-

241 Inscription or recording of non-transferability

16.   

39 Pledge of locked-in specified securities

242       Pledge   of         locked-in specified securities

17.   

40 Transferability of locked-in     specified securities

243 Transferability of locked-in   specified securities

18.   

5 Appointment of merchant banker and other intermediaries.

244 APPOINTMENT OF LEAD MANAGERS, OTHER INTERMEDIARIES AND

COMPLIANCE OFFICER

19.   

-

245 Disclosures in the draft

offer document and offer document

20.   

6Filing   of         the        offer

document

246       Filing     of         the offer

document

21.   

61         Copies   of         offer documents to be available to public

247 Offer document to be made available to public

22.   

31 Face value of equity shares

248 Face value of equity shares

23.   

28 Pricing

249 Pricing

24.   

30 Differential pricing

250 Price and price band

25.   

29 Differential pricing

251 Differential pricing

26.   

41         Minimum           offer     to public

252       Minimum           offer     to public

27.   

43 Allocation in the net

offer

253 Allocation in the net

offer

28.   

42         Reservation       on         a competitive basis

254       Reservation       on         a competitive basis

29.   

58 Abridged prospectus, abridged letter of offer and ASBA.

255 Abridged prospectus

30.   

 

256 ASBA

31.   

 

257       Availability         of         issue material

32.   

59 Prohibition on payment of incentives

258 Prohibition on payment of incentives

33.   

7 Security deposit

259 Security deposit

34.   

106N DEFINITION

-

35.   

1060 Filing of offer document and due diligence certificate.

210 Post-issue reports

( final post-issue report on the lines of Parts A of Schedule XVII, along with a

due diligence certificate)

36.   

106P     Underwriting                  by merchant            bankers and underwriters.

260 Underwriting

37.   

106V Market Making

261 Market making

38.   

16 Monitoring agency

262 Monitoring agency

39.   

60 Public communications, publicity materials, advertisements and research reports.

263       Public communications,   publicity

materials, advertisements and research reports

40.   

47 Pre-issue advertisement for public issue. and 48 Issue opening and issue closing

advertisement for public issue.

264       Issue-related advertisements

41.   

-

265 Opening of the issue*

42.   

46 Period of subscription

266 Period of subscription

43.   

106Q     Minimum Application Value.

267       Application         and minimum application value

44.   

106 R Minimum Number of Allottees.

 

45.   

204 Allotment procedure

and basis of allotment

268       Allotment           procedure

and basis of allotment

46.   

18 Allotment, refund and payment of interest

269 Allotment, refund and payment of interest

47.   

147       Post-issue advertisements

270       Post-issue advertisements

48.   

93         Post-issue

responsibilities of the lead manager(s)

271       Post-issue responsibilities of the lead

manager(s)

49.   

53         Release of subscription money

272 Release of subscription money

50.   

65 Post-issue reports

273 Post-issue reports

51.   

54 Reporting                  of transactions   of         the

promoters and promoter group

274 Reporting of transactions of the

promoters and promoter group

52.   

106S Listing of specified securities.

275 Listing

53.   

106T Migration to SME exchange.

276       Migration           to         SME exchange

54.   

106U Migration to Main Board.

277       Migration           to         Main Board.

55.   

19 Restriction on further capital issues

278 Restriction on further capital issues

56.   

45 Price stabilisation through green shoe option

279 Price stabilisation through green shoe option

57.   

24 Alteration of rights of holders of specified securities

280 Alteration of rights of holders of specified securities

58.   

19 Restriction on further capital issues.

281 Further Issues


√ New Chapter no added. The Chapter IX is divided into nine Parts

√ ^ New Regulation isadded. In ICDR 2009, Regulation 4 was read Common Conditions For Public Issues And Rights Issues. Further in ICDR 2018 Consent of promoter or directors   is   to be taken in regards to fugitive economic offender.

√ $The profesiionals shall also refer NSE emerge and BSE SME criteria for the same.  Specifical disclosure in regards to compliance are clearly specified like Schedule III , and AS of Companies Act should be complied.  Disclosure an issuer formed out of merger or a division of an existing company,

Section 2(f) of Fugitive Economic Offenders Act, 2018 “fugitive economic offender” means any individual against whom a warrant for arrest in relation to a Scheduled Offence has been issued by any Court in India, who— (i) has left India so as to avoid criminal prosecution; or (ii) being abroad, refuses to return to India to face criminal prosecution

http://egazette.nic.in/WriteReadData/2018/184901.pdf

√ *Streamlined with Section 32 of Companies Act2013. This regulation specifically provides that the issue shall be opened after at least three working days from the date of registering the offer document with the Registrar of Companies, but in companies Act Section 32 only said for RHP so for fixed price issue Section

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