SEBI relaxes conditions for fast track further public offer under the ICDR Regulations 2018
June 10, 2020
SEBI has relaxed the eligibility conditions relating to a Fast Track Further Public Offer (FPO) under the ICDR Regulations 2018. This relaxation is for FPOs that will open on or before 31 March 2021, as under:
Sub-regulations (1), (2), (3), ( 4) and ( 5) and (9) of regulation 123 related to the filing of draft offer/offer documents) shall not apply if the issuer satisfies the conditions under Regulation 155 of ICDR Regulations, some of which have been temporarily relaxed, namely,
Regulation155(c), The average market capitalisation of public shareholding of the issuer is at least five hundred crore rupees in case of public issue (relaxed from one thousand crore rupees)
Regulation 155(h), No show-cause notices, excluding under adjudication proceedings, have been issued by the Board and pending against the issuer or its promoters or whole-time directors as on the reference date; In cases where against the issuer or its promoters/ directors/ group companies, i) a show cause notice(s) has been issued by the Board in an adjudication proceeding or ii) prosecution proceedings have been initiated by the Board, necessary disclosures in respect of such action(s) along-with its potential adverse impact on the issuer shall be made in the offer documents.
Regulation 155(j), The issuer or promoter or promoter group or director of the issuer has fulfilled the settlement terms or adhered to directions of the settlement order(s) in cases where it has settled any alleged violation of securities laws through the consent or settlement mechanism with the Board.
Regulation 155(l), The impact of audit qualifications, if any and where quantifiable, on the audited accounts of the issuer in respect of those financial years for which such accounts are disclosed, shall be appropriately disclosed and accounts accordingly restated, in the offer documents. Further, that for the qualifications wherein impact on the financials cannot be ascertained the same shall be disclosed appropriately in the offer documents.
To refer to SEBI circular dated 9 June 2020, click here.
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