Lock-In of Excess Promoters Contribution

In the case of public issue by an unlisted company promoters contribution (i.e participation by promoters in excess of the required minimum percentage) would be locked-in for a period of one year. The excess contribution in a public issue a listed company would also be locked-in for a period of one year as per the lock-in provisions specified in the guidelines on preferential issue (which are discussed subsequently), However, access promoters contribution in public issue in which the requirement of promoters contribution not applicable (i.e by a company listed on a stock exchange for a minimum of one year and which has a track record of dividend payment for a minimum three immediately preceding years) not be subject to a lock-in period. If a shortfall in the rum allotment category is met by provisions specified by the SEBI for rum allotment and reservations (which discussed subsequently), such a subscription would also be locked-in for a period of three years, (The provisions reads person to from firm allotment is·proposed to be made, from the offer made to him after filing of the prospectus ROCs, the extent of the shares proposed to be allotted to would be teen up by the promoters and the subscription would be brought in at least day prior to the issue opening date.)

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