New lock in rules

Monday, 5 March 2012 00:00 - - {{hitsCtrl.values.hits}}

In a further tightening of regulations, the SEC also amended the requirements with regard to new listings.

Following is the SEC statement:

Listings by way of an Offer for Subscription

To introduce a lock-in period for all shares issued prior to an Initial Public Offer (IPO) in the following manner.

i. Shares held by the promoters and all other shareholders prior to an offering to the public shall be locked-in for a period of nine months from the date of listing of shares on the CSE.

ii. Where a public company has allotted shares within a period of one year prior to the date of the Initial Listing Application, aft such shares shall be locked-in for a period of 12 months from the date of listing on the CSE.

Listings by way of an Offer for Sale

a. Where a company makes an application to list under this category, the shareholder/s considering divesting their shareholding through an Initial Public Offer (IPO) should have held such shares at least for a period of 18 months prior to the date of the Initial Listing Application.

b. To introduce a lock-in period for all shares held by promoters and other existing shareholders, other than shares offered and accepted by the public through an Initial Public Offer (IPO) in the following manner.

i. Shares continued to be held by the promoters and all other shareholders, at the time of the Initial Listing Application to be locked-in for a period of 09 months from the date of listing on the CSE.

ii. Where a public company has allotted shares within a period of one year prior to the date of the Initial Listing Application, such shares shall be locked-in for a period of 12 months from the date of listing on the CSE.