Regulation 98 - Conditions for issue of IDR. - Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009

Conditions for issue of IDR. 98. An issue of IDR shall be subject to the following conditions: (a) issue size shall not be less than fifty crore rupees; (b) procedure to be followed by each class of applicant for applying shall be mentioned in the prospectus; (c) minimum application amount shall be twenty thousand rupees; (d) at least fifty per cent of the IDR issued shall be allotted to qualified institutional buyers on proportionate basis as per illustration given in Part C of Schedule XI; (e) the balance fifty per cent may be allocated among the categories of non-institutional investors and retail individual investors including employees at the discretion of the issuer and the manner of allocation shall be disclosed in the prospectus. Allotment to investors within a category shall be on proportionate basis: 1 [Provided that at least thirty per cent. of the IDRs being offered in the public issue shall be available for allocation to retail individual investors and in case of under subscription in retail individual investor category, spillover to other categories to the extent of under subscription may be permitted. Explanation: For the purpose of this regulation, employee shall mean a person who,- (a) is a resident of India, and (b) is a permanent and full-time employee or a director, whether whole time or part time, of the issuer or of the holding company or subsidiary company or of the material associate(s) of the issuer, whose financial statements are consolidated with the issuer s financial statements, working in India and does not include promoters and an immediate relative of the promoter (i.e., any spouse of that person, or any parent, brother, sister or child of the person or of the spouse).] (f) At any given time, there shall be only one denomination of IDR of the issuing company. (g) 2 [the issuing company shall ensure that the underlying equity shares against which IDRs are issued have been or will be listed in its home country before listing of IDRs in stock exchange(s). (h) the issuing company shall ensure that the underlying shares of IDRs shall rank pari-passu with the existing shares of the same class.] ******** 1 Substituted by SEBI (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2010, w.e.f. 13.04.2010. Prior to its substitution, proviso as inserted by SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2009, w.e.f. 11.12.2009, read as under: Provided that atleast thirty per cent. of the said fifty per cent. IDR issued shall be allocated to retail individual investors and in case of under-subscription in retail individual investor category, spill over to the extent of under-subscription shall be permitted to other categories. 2 Inserted by the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, w.e.f. 01.12.2015.