This website is only for informational purposes. Visitors are requested to note that the information is intended to be correct, complete, and up-to-date. Juris Corp does not warrant that the information contained on this website is accurate or complete, and disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.
This website is not intended to be a source of advertising or solicitation. The reader must not consider the information contained herein to be an invitation for a lawyer-client relationship, must not rely on information provided herein and must seek independent advice. Transmission, receipt or use of any information on this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act or refrain from acting, based upon any or all of the contents of this website.
Furthermore, Juris Corp does not wish to represent anyone desiring representation based solely upon viewing this web site. Finally, the reader is warned that the use of e-mail for confidential or sensitive information is susceptible to inherent risks of lack of confidentiality associated with sending e-mail over the internet.
By clicking on the "I understand and agree" button below, the user acknowledges that:
We are not liable for any consequence of any action taken by the user relying on information provided under this website. In cases where the user has any legal issues, he/she must seek independent legal advice.
Brief Overview:
The norms for issuing non-convertible securities (“Securities”) through the electronic book provider (“EBP”) mechanism have been revised.
Technical Details:
The key changes being:
1) The threshold for applicability of EBP mechanism has been lowered from INR 100 crores to INR 50 crores. Thus, bidding through EBP mechanism shall be mandatory in case of:
(a) single issuance of INR 50 crores or above;
(b) shelf issuance where the aggregate of all issuances exceeds INR 50 crores; OR
(c) any subsequent issue of Securities that aggregates the total issue size to more than INR 50 crores in a financial year.
2) It is clarified that the green shoe option for the issue of Securities cannot exceed 5 times of the base issue size.
3) The bidding process to be determined on the basis of best bid being offered in terms of price or coupon instead of being determined on the first come first serve basis.
4) Additionally, to ensure the subscription to the pre-targeted investors while issuing Securities through EBP mechanism, a concept of ‘anchor investor’ is introduced wherein the issuer may provide an option to the anchor investor to subscribe up to 30% of the base issue size of the total issue which shall be excluded from the bidding process on the EBP platform. Such portion of the issue size shall be reserved for such anchor investor to subscribe. The anchor investor shall be permitted to bid through the EBP mechanism for the remaining issue size.
The above changes were introduced by the Securities and Exchange Board of India vide its circular dated 10th October 2022. This will be applicable to issuances made from 1st January 2023.
For further details, please see:
For any queries / clarifications, please feel free to ping us and we will be happy to chat:
• Ms. Apurva Kanvinde (apurva.kanvinde@jclex.com)
• Mr. Smit Parekh (smit.parekh@jclex.com)