These guidelines will apply to all issues of capital made by companies hereafter. However, those companies holding consents from the controller of Capital Issues granted prior to the promulgation of the Ordinance may proceed with the issues on the terms and conditions contained therein, subject to the requirement that the guidelines now issued by SEBI would also apply to such issues to the extent they are not inconsistent with the terms of the CCI consents.
In respect of further issues, if there are no promoters, the “promoters contribution” will mean contribution by directors, friends, relatives, associates and contribution from them shall not be less than 25% or 20% of the total issue of equity capital as the case may be, with lock-in period of five years.
