SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION

Mumbai, the 29th July, 2019

SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) (THIRD AMENDMENT) REGULATIONS, 2019

No. SEBI/LAD-NRO/GN/2019/29. ─ In exercise of the powers conferred under section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following Regulations to further amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, namely:-

1. These regulations may be called the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2019.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, –

I. in regulation 2, in sub-regulation (1), after clause (eee) and before clause (fff), the following clause shall be inserted, namely, –

“(eeea) “SR equity shares” means the equity shares of an issuer having superior voting rights compared to all other equity shares issued by that issuer.”

II. in regulation 6, after sub-regulation (2), the following sub-regulation shall be inserted, namely, –

“(3) If an issuer has issued SR equity shares to its promoters/ founders, the said issuer shall be allowed to do an initial public offer of only ordinary shares for listing on the Main Board subject to compliance with the provisions of this Chapter and these clauses –

i. the issuer shall be intensive in the use of technology, information technology, intellectual property, data analytics, bio-technology or nano-technology to provide products, services or business platforms with substantial value addition.

ii. the SR shareholder shall not be part of the promoter group whose collective net worth is more than rupees 500 crores:

Explanation: While determining the collective net worth, the investment of SR shareholder in the shares of the issuer company shall not be considered.

iii. The SR shares were issued only to the promoters/ founders who hold an executive position in the issuer company;

iv. The issue of SR equity shares had been authorized by a special resolution passed at a general meeting of the shareholders of the issuer, where the notice calling for such general meeting specifically provided for –

a. the size of issue of SR equity shares,

b. ratio of voting rights of SR equity shares vis-à-vis the ordinary shares,

c. rights as to differential dividends, if any

d. sunset provisions, which provide for a time frame for the validity of such SR equity shares,

e. matters in respect of which the SR equity shares would have the same voting right as that of the ordinary shares,

v. The SR equity shares have been held for a period of atleast 6 months prior to the filing of the red herring prospectus;

vi. The SR equity shares shall have voting rights in the ratio of a minimum of 2:1 upto a maximum of 10:1 compared to ordinary shares and such ratio shall be in whole numbers only;

vii. The SR equity shares shall have the same face value as the ordinary shares;

viii. The issuer shall only have one class of SR equity shares;

ix. The SR equity shares shall be equivalent to ordinary equity shares in all respects, except for having superior voting rights.”

III. in regulation 14, in sub-regulation (2), in clause (a), after the words “equity shares” and before the words “or by”, the words and symbols “, including SR equity shares held, if any,” shall be inserted.

IV. in regulation 16, the existing regulation shall be numbered as sub-regulation (1) thereof and after the sub-regulation (1) so numbered, the following sub-regulation shall be inserted, namely, –

“(2) The SR equity shares shall be under lock-in until conversion into equity shares having voting rights same as that of ordinary shares or shall be locked-in for a period specified in sub-regulations (1), whichever is later.”

V. in regulation 21, after the words “Specified securities” and before the words “held by the promoters”, the symbols and words “, except SR equity shares,” shall be inserted.

VI. in regulation 22, after the words “specified securities” and before the words “held by the promoters”, the symbols and words “, except SR equity shares,” shall be inserted.

VII. in regulation 62, after sub-regulation (3), the following sub-regulation shall be inserted, namely, –

“(4) Where the issuer has issued SR equity shares to its promoters or founders, then such a SR shareholder shall not renounce their rights and the SR shares received in a rights issue shall remain under lock-in until conversion into equity shares having voting rights same as that of ordinary equity shares along with existing SR equity shares.”

VIII. in regulation 113, after sub-regulation (4), the following sub-regulation shall be inserted, namely, –

“(5) The SR equity shares of promoters, if any, shall be eligible towards computation of minimum promoters’ contribution.”

IX. in regulation 115, after clause (b) and before the proviso, the following clause shall be inserted, namely, –

“(c) The SR equity shares shall be under lock-in until their conversion to equity shares having voting rights same as that of ordinary shares, provided they are in compliance with the other provisions of these regulations.

X. in regulation 119, after the words “Specified securities” and before the words “held by the promoters”, the symbols and words “, except SR equity shares,” shall be inserted.

XI. in regulation 120, after the words “specified securities” and before the words “held by the promoters”, the symbols and words “, except SR equity shares,” shall be inserted.

XII. in regulation 294, after sub-regulation (4), the following sub-regulation shall be inserted, namely, –

“(5) If an issuer has issued SR equity shares to its promoters or founders, any bonus issue on the SR equity shares shall carry the same ratio of voting rights compared to ordinary shares and the SR equity shares issued in a bonus issue shall also be converted to equity shares having voting rights same as that of ordinary equity shares along with existing SR equity shares.”

XIII. in Schedule V, in Form A, in clause (11), in sub-clause (a), after the words “of the issuer” and before the symbol “,”, the words and symbols “, excluding SR equity shares, where an issuer has outstanding SR equity shares”, shall be inserted.

XVI. in Schedule VI, in Part A, in clause 15 dealing with “Offering Information”, in sub-clause (A) dealing with “Terms of the Issue”, –

i. in item (a), after the words and symbol “including dividends.”, the words and symbol “In case of companies having SR equity shares, a statement that the shares issued in the issue shall be pari passu with the existing shares (excluding SR equity shares) in all respects including dividends.”, shall be inserted;

ii. in item (d), after the words and symbol “instrument holders.”, the words and symbols “In case of an issuer having SR equity shares, the special rights of such SR shareholders shall be disclosed alongwith the circumstances in which the SR equity shares shall be treated as ordinary equity shares.”, shall be inserted.

sd/-AJAY TYAGI
CHAIRMAN
SECURITIES AND EXCHANGE BOARD OF INDIA

Footnotes:

1. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 was published in the Gazette of India on September 11, 2018, vide notification No. SEBI/LAD-NRO/GN/2018/31.

2. The Principal Regulations was subsequently amended on –

(a) December 31, 2018 by the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2018, vide notification No. SEBI/LAD-NRO/GN/2018/57.

(b) March 29, 2019 by the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2019, vide notification No. SEBI/LAD-NRO/GN/2019/05.

(c) April 5, 2019 by the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2019, vide notification No. SEBI/LAD-NRO/GN/2019/08.

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(Above post been published after replacing earlier post which become obsolete now but comments are not been removed)

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82 Comments

  1. sushma ravishankar says:

    sir basically i have done B E in IT but practicing indirect taxes and direct taxes along with my husband since 15 years i want to know if I take this course can i take the gst practicioner exam

  2. Dilip Kumar says:

    It is called GST practitioners advanced course. Is there a basic course also? I mean to ask if this course is suitable for beginners also ?

  3. JAYANTA MITRA says:

    I am very much interest for this training. I have the mark sheet of my graduation but difficult to find the Certificate. So is the mark sheet enough to prove my eligibility for this training.

  4. M Surya prakash says:

    Want to attend this training programme in Hyderabad. Is there any planning to conduct training in feb’2019 in Hyderabad.

    8939944146

  5. RANJAN MAJUMDER says:

    I am at Kolkata . Due to earlier committed schedule, not able to enroll 6th jan,2018 GST Training Prgramme.. Is their any arangement after trainging exam and how to get certificate.

  6. RANJAN MAJUMDER says:

    I AM INTERESTED THE SAID COURSE, BT LAST DAY 6TH JAN UNFORTUNATELY EXAM APEARED I AM NOT JOIN THE SAID COURSE. I HAVE CERTIFICATE GST AND EXAM GST ANY CHANCE

  7. BHAVESH SURELIYA says:

    is there any schedule training program at ahemedabad
    if arrange to conduct a gst training programme at
    please share it me
    i would like to join this program
    thanks & regards,

  8. Subramanian R says:

    Subramanian R,
    I am at Chennai. Due to earlier committed schedule, not able to enroll 22,23 Sep 18 and 29,30/18 GST Training Prgramme.. Is their any similar programme during next month at Chennai for the participation.

    Thanks & regds

  9. Mohammed Siddique says:

    What will be benifits of doing this course ?
    we will be given GSTP ID based on this course ?
    Is it offered by the department of GST so that we can start our own GSTP consultancy ?
    ????

  10. Noyala Sheela says:

    Dear Sir / Madam

    Can I attend the course on 29-30 Sep in Bangalore and the second session in any other places as I am not in town on 6-7 October (have prior engagements).

  11. SYED MAHABOOB PEER says:

    Sir,
    If the 4 DAYS CERTIFIED GST PRACTITIONER Certificate Course on GST is introduced by the competent authority (i.e., Ministry of M.S.M.E.), Whether it has been recognized as equivalent to that of the Examination to be conducted by the National Academy of Customs, Indirect Taxes & Narcotics (NACIN)? OR atleast is there any initiation/attempt to achieve so?

    Otherwise, the contents of the above Article/ Notification may lead to be misguiding the aspirants.

  12. Surya Prakash Soni says:

    Please arrange/ make available this course at Ahmedabad [Gujarat} and or also at Jodhpur [Raj.], because these are Metro Cities in Gujarat and Rajasthan.

  13. Dattatray Krishnaji Vaishampayan. says:

    Sir, Greetings for the day.
    I am Dattatray Vaishampayan. I would like to join 4 day course on GST by M.S.M.E.
    I stay at NAGPUR (Maharashtra State) Hence I humbly request you yo Start the course at NAGPUR. If it is not possible please inform me if it is available as CORRESPONDENCE COURSE.
    Expecting your early reply.
    Thanks & Good Day.

    (Dattatray Vaishampayan)
    9763600044

  14. ADVOCATE MUKESH AGARWAL says:

    KINDLY ORGANISE SUCH TRAINNIG CAMP AT DIBRUGARH ,ASSAM FOR THE BENEFIT OF PROFESSIONAL.

    IF ANY ARRANGEMENT REQUIRED PLEASE CONTACT ME.

  15. S.Krishna Kumar says:

    Sir,
    I don’t know about GST. I must learn about it. Please send details of training programme dates. I need training at Coimbatore. Thank You.

  16. Lalit Mohan Singh says:

    I wish to register to undergo 4 days GST certification course at Delhi on 23, 24, 30 Jun 18 and 1 Jul 18. Kindly guide me whether I may now register for it or not.

    Thanks & regards

  17. POTUKUCHI MURALI KRISHNA PRASAD says:

    The training dates given in the programme given in the article and registration form are different for HYDERABAD .What is correct.

  18. Sudama Mishra says:

    Dear Sir,

    Please suggest to me, I am M.Com. in 1991 with first class and i am working last 25 years in accounts and finance field in New Delhi. I want to GST Certification course, my DOB is 12/08/1969 (49 Year).
    I called to MSME but they asked you age above 35 years, so u not able for this course.

  19. NEHA PATEL says:

    Dear Sir /Madam
    23, 24, 31 June & 1 July 2018 (IN NEW DELHI & HYDERABAD)
    These dates are given by you for the GST Certification Course in New Delhi & Hyderabad but in June only 30 days. Its typical mistake , So please correct the date on site.

  20. JAYAN THACHILODY says:

    Sir, I am intereting to study GST practical course from your institute. Please inform the details.
    Regards
    Jayan

  21. Chandan Santoshrao Gadge says:

    I am interested to join Tax practitioner course I am Postgraduate in Business administration. I am from Amravati, Maharashtra

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