Regulation 179 - Allotment of specified securities - Securities And Exchange Board of India (Issue Of Capital And Disclosure Requirements) Regulations, 2018

PART VII: APPLICATION AND ALLOTMENT 179. (1) The applicants in qualified institutions placement shall not withdraw or revise downwards their bids after the closure of the issue. (2) Allotment of specified securities shall be made subject to the following conditions: a) minimum of ten per cent. of eligible securities shall be allotted to mutual funds: Provided that any unsubscribed portion of the said minimum percentage or any part thereof may be allotted to other qualified institutional buyers; b) no allotment shall be made, either directly or indirectly, to any qualified institutional buyer who is a promoter or any person related to the promoters of the issuer: Provided that a qualified institutional buyer who does not hold any shares in the issuer and who has acquired the said rights in the capacity of a lender shall not be deemed to be a person related to the promoters. Explanation: For the purpose of this clause, a qualified institutional buyer who has any of the following rights shall be deemed to be a person related to the promoters of the issuer:- (a) rights under a shareholders agreement or voting agreement entered into with promoters or promoter group; (b) veto rights; or (c) right to appoint any nominee director on the board of the issuer. (3) In a qualified institutions placement of non-convertible debt instrument along with warrants, an investor can subscribe to the combined offering of non-convertible debt instruments with warrants or to the individual securities, that is, either non- convertible debt instruments or warrants.