Regulation 31 - Face value of equity shares - Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009

Face value of equity shares. 31. (1) Subject to the provisions of the Companies Act, 1956, the Act and these regulations, an issuer making an initial public offer may determine the face value of the equity shares in the following manner: (a) if the issue price per equity share is five hundred rupees or more, the issuer shall have the option to determine the face value at less than ten rupees per equity share: Provided that the face value shall not be less than one rupee per equity share; (b) if the issue price per equity share is less than five hundred rupees, the face value of the equity shares shall be ten rupees per equity share: Provided that nothing contained in this sub-regulation shall apply to initial public offer made by any government company, statutory authority or corporation or any special purpose vehicle set up by any of them, which is engaged in infrastructure sector. (2) The disclosure about the face value of equity shares (including the statement about the issue price being X times of the face value) shall be made in the advertisements, offer documents and application forms in identical font size as that of issue price or price band. Explanation: For the purposes of this regulation, the term infrastructure sector includes the facilities or services as specified in Schedule X.