Regulation 16 - Monitoring agency - Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009

Monitoring agency. 16. (1) If the issue size 1 [, excluding the size of offer for sale by selling shareholders,] exceeds 2 [one hundred] crore rupees, the issuer shall make arrangements for the use of proceeds of the issue to be monitored by a public financial institution or by one of the scheduled commercial banks named in the offer document as bankers of the issuer: Provided that nothing contained in this clause shall apply to 3 [ ] an issue of specified securities made by a bank or public financial institution 4 [or an insurance company]. 5 [(2) The monitoring agency shall submit its report to the issuer in the format specified in Schedule IX on a quarterly basis, till at least ninety five percent of the proceeds of the issue, excluding the proceeds under offer for sale and amount raised for general corporate purposes, have been utilized.] 6 [(3) The Board of Directors and the management of the company shall provide their comments on the findings of the monitoring agency as specified in Schedule IX. (4) The issuer shall, within forty five days from the end of each quarter, publically disseminate the report of the monitoring agency by uploading the same on its website as well as submitting the same to the stock exchange(s) on which its equity shares are listed.] ******* 1 Inserted by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2017, w.e.f. 31.5.2017. 2 Substituted ibid. 3 The words an offer for sale or omitted ibid. 4 Inserted by the SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2010, w.e.f. 12.11.2010. 5 Substituted by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2017, w.e.f. 31.5.2017. Prior to such substitution, the sub-regulation (2) read as: (2)The monitoring agency shall submit its report to the issuer in the format specified in Schedule IX on a half yearly basis, till the proceeds of the issue have been fully utilised. 6 Inserted by the SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2017, w.e.f. 31.5.2017.