Regulation 74 - Reservations - Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018

PART VII: ISSUANCE CONDITIONS AND PROCEDURE Reservations 74. (1) The issuer shall make a rights issue of equity shares only if it has made reservation of equity shares of the same class in favour of the holders of outstanding compulsorily convertible debt instruments, if any, in proportion to the convertible part thereof. (2) The equity shares so reserved for the holders of fully or partly compulsorily convertible debt instruments shall be issued to the holder of such convertible debt instruments 2 [ **** ] at the time of conversion of such convertible debt instruments, on the same terms at which the equity shares offered in the rights issue were issued. 1 [ Provided that for the purposes of offering such rights entitlements, the issuer company shall not be required to credit rights entitlements. ] (3) Subject to other applicable provision of these regulations, the issuer may make reservation for its employees along with rights issue subject to the condition that the value of allotment to any employee shall not exceed two lakhs rupees. Provided that in the event of under-subscription in the employee reservation portion, the unsubscribed portion may be allotted on a proportionate basis, for a value in excess of two lakhs rupees, subject to the total allotment to an employee not exceeding five lakhs rupees. ************* NOTES:- 1. Inserted vide Notifivation No. SEBI/LAD-NRO/GN/2020/31 dated 28-09-2020 2. Omitted vide Notification No. SEBI/LAD-NRO/GN/ 2022/ 63 dated 14-01-2022 before it was read as or warrants