Regulation 76 - Pricing of equity shares - Frequently traded shares - Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009

Pricing of equity shares 1 [- Frequently traded shares]. 76. (1) If the equity shares of the issuer have been listed on a recognised stock exchange for a period of 2 [twenty six weeks] or more as on the relevant date, the equity shares shall be allotted at a price not less than higher of the following: (a) The average of the weekly high and low of the 3 [volume weighted average price] of the related equity shares quoted on the recognised stock exchange during the 4 [twenty six weeks] preceding the relevant date; or (b) The average of the weekly high and low of the 5 [volume weighted average prices] of the related equity shares quoted on a recognised stock exchange during the two weeks preceding the relevant date. (2) If the equity shares of the issuer have been listed on a recognised stock exchange for a period of less than 6 [twenty six weeks] as on the relevant date, the equity shares shall be allotted at a price not less than the higher of the following: (a) the price at which equity shares were issued by the issuer in its initial public offer or the value per share arrived at in a scheme of arrangement under sections 391 to 394 of the Companies Act, 1956, pursuant to which the equity shares of the issuer were listed, as the case may be; or (b) the average of the weekly high and low of the 7 [volume weighted average prices] of the related equity shares quoted on the recognised stock exchange during the period shares have been listed preceding the relevant date; or (c) the average of the weekly high and low of the 8 [volume weighted average prices] of the related equity shares quoted on a recognised stock exchange during the two weeks preceding the relevant date. (3) Where the price of the equity shares is determined in terms of sub-regulation (2), such price shall be recomputed by the issuer on completion of 9 [twenty six weeks] from the date of listing on a recognised stock exchange with reference to the average of the weekly high and low of the 10 [volume weighted average prices] of the related equity shares quoted on the recognised stock exchange during these 11 [twenty six weeks] and if such recomputed price is higher than the price paid on allotment, the difference shall be paid by the allottees to the issuer. (4) Any preferential issue of specified securities, to qualified institutional buyers not exceeding five in number, shall be made at a price not less than the average of the weekly high and low of the 12 [volume weighted average prices] of the related equity shares quoted on a recognised stock exchange during the two weeks preceding the relevant date. Explanation: For the purpose of this regulation, stock exchange means any of the recognised stock exchanges in which the equity shares are listed and in which the highest trading volume in respect of the equity shares of the issuer has been recorded during the preceding 13 [twenty six weeks] prior to the relevant date. ********* 1 Inserted by SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014, w.e.f. 25.08.2014. 2 Substituted for the words six months by SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2012, w.e.f. 30.01.2012. 3 Substituted for closing price by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014, w.e.f. 25.08.2014. 4 Substituted for the words six months by SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2012, w.e.f. 30.01.2012. 5 Substituted for closing prices by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014, w.e.f. 25.08.2014. 6 Substituted for the words six months by SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2012, w.e.f. 30.01.2012. 7 Substituted for closing prices by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014, w.e.f. 25.08.2014. 8 Substituted for closing prices by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014, w.e.f. 25.08.2014. 9 Substituted for the words six months by SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2012, w.e.f. 30.01.2012. 10 Substituted for closing prices by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014, w.e.f. 25.08.2014. 11 Substituted for the words six months by SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2012, w.e.f. 30.01.2012. 12 Substituted for closing prices by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2014, w.e.f. 25.08.2014. 13 Substituted for the words six months by SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2012, w.e.f. 30.01.2012.