PPT-SEBI (ICDR) Regulations 2023
PPT-SEBI (ICDR) Regulations 2023
PPT-SEBI (ICDR) Regulations 2023
ANALYSIS
Securities and Exchange Board of India (SEBI) introduced SEBI (Issue of Capital and
Disclosure Requirements) (Second Amendment) Regulations 2023
focuses on
These amendments modify SEBI (Issue of Capital and Disclosure Requirements)
provisio Regulations 2018
ns
The amendments have significant implications
• Focuses on for issuers and intermediaries, particularly in
Regulation 40 of terms of regulatory compliance.
SEBI (ICDR) Key changes were made to Regulations 40 and
Regulations 136, concerning underwriting in Initial Public
2018, and Offers (IPOs) and Further Public Offers
Regulation 136 (FPOs), respectively
provisions
AMENDMENT TO REGULATION 40(1) AND 40 (2)
OF SEBI (ICDR) 2018
Amendment to Regulation 40(1) of SEBI (ICDR) 2018
Underwriting agreement required for IPOs other than through a book-built issue.
Agreement with merchant banker or stock brokers registered with SEBI to cover under-subscription risk.
Agreement specifies maximum number of securities subscribed directly or by procuring at a predetermined price, not less than
issue price.
Issuer obligated to disclose underwriting agreement details in prospectus.
Major changes involve designating merchant bankers and stock brokers as underwriters for Regulations 40(1) and 40(2),
outlining their roles and responsibilities.
Provides intermediaries with option to procure subscription towards underwriting obligation, adding flexibility.
Mandates underwriting for rejected applications or bids, potentially boosting IPO success by ensuring minimum
subscription even in case of rejections.
These changes are poised to enhance IPO success rates by addressing uncertainties previously present in Regulation 40.
Amendments are anticipated to bolster liquidity and transparency in Indian capital markets and streamline compliance
processes.