SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
SMDRP/POLICY/CIR-30/98
October 16, 1998
To
The Presidents/Executive Directors/Managing Directors
of all the Stock Exchanges.
Dear Sir,
Infrastructure being an important aspect for economic development and in order to encourage infrastructure projects in India, especially to facilitate financing of setting up of such projects, it has now been decided that the requirement of 5 public shareholders for every Rs. 1 lakh of net capital offer made to the public as communicated vide our Circular No. SMD/RCG/JJ/1819/96 dated May 15, 1996 would not be applicable to the public issues by infrastructure companies.
In view of the above, the following proviso may be added to the clause specifying the minimum number of shareholders in the listing agreement :
“Provided that nothing in this clause shall apply to the public issue made by an infrastructure company”.
Explanation :
For the purposes of this proviso “infrastructure company” means the company as defined under Section 10(23G) of the Income Tax Act, 1961, provided their projects are appraised by a Developmental Financial Institution (DFI) or Infrastructure Development Finance Corporation (IDFC) or Infrastructure Leasing and Financial Services (IL&FS) and whose projects also have the participation of minimum 5% of the project cost (in debt/or equity) by the appraising institution.
This circular may be made applicable from the date of its issuance.
Yours faithfully,
P K BINDLISH
Division Chief
Secondary Market, Depository
Research & Publications Department
E-mail : @ sebiho.ernet.in
Internet : www.sebi.com
