Securities Contracts(Regulation) Amendment Rules, 2001. - G.S.R. 415(E) - F.No. 1/42/SE/99 - SEBI

MINISTRY OF FINANCE (Department of Economic Affairs) (CAPITAL MARKETS, EXTERNAL COMMERCIAL BORROWINGS AND PENSION REFORMS DIVISION) NOTIFICATION New Delhi, the 7th June, 2001 G.S.R. 415(E).- In exercise of the powers conferred by section 30 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Central Government hereby makes the following rules, further to amend the Securities Contracts(Regulation) Rules, 1957 namely:- 1. (1) These rules may be called the Securities Contracts(Regulation) Amendment Rules, 2001. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Securities Contracts (Regulation) Rules, 1957, in rule 19, sub-rule(2), for the clause (b), the following shall be substituted, namely :- (b) At least 10% of each class or kind of securities issued by a company was offered to the public for subscription through advertisement in newspapers for a period not less than two days and that applications received in pursuance of such offer were allotted subject to the following conditions: (a) minimum 20 lakh securities (excluding reservations, firm allotment and promoters contribution) was offered to the public; (b) the size of the offer to the public i.e. the offer price multiplied by the number of securities offered to the public was minimum ₹ 100 crores; and (c) the issue was made only through book building method with allocation of 60% of the issue size to the qualified institutional buyers as specified by the Securities and Exchange Board of India: Provided that if a company does not fulfil the conditions, it shall offer at least 25% of each class or kind of securities to the public for subscription through advertisement in newspapers for a period not less than two days and that applications received in pursuance of such offer were allotted: Provided further that a recognised stock exchange may relax any of the conditions with the previous approval of the Securities and Exchange Board of India, in respect of a Government Company within the meaning of Section 617 of the Companies Act, 1956 (1 of 1956) and subject to such instructions as that Board may issue in this behalf from time to time. Explanation : For the purpose of this clause, it is hereby clarified that where any part of the securities sought to be listed have been or are agreed to be taken up by the Central Government, a State Government, development or investment agency of a State Government, Industrial Development Bank of India, Industrial Finance Corporation of India, Industrial Credit and Investment Corporation of India Limited, Life Insurance Corporation of India, General Insurance Corporation of India and its subsidiaries, namely, the National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Fire and General Insurance Company Limited and the United Fire and General Insurance Company Limited or Unit Trust of India, the total subscription to the securities, whether by one or more of such bodies, shall not form part of the ten per cent or twenty five per cent of the securities, as the case may be, to be offered to the public. [F.No. 1/42/SE/99] DR. J. BHAGWATI, Jt. Secy. Note: The Principal Notification was issued under SRO No. 576 dated 21.2.1957 published in the Gazette of India, Extraordinary, Part II, Section 3, page 619 dated 21.2.1957 and was subsequently amended by the amendment Notification GSR 1096 dated 14.7.1967 published in the Gazette of India II, Part II section 3, sub section (i) w.e.f. 22.7.1967, GSR 685 dated 3.6.1972 published in the Gazette of India, Part II, section 3, sub section (i) w.e.f. 10 6 1972 page 1556 GSR 959, dated 8.8.1972 w.e.f. 12.8.1972, GSR 2641 dated 1.11.1975 w.e.f. 8 11 1975 GSR 1083 dated 11.11.1985 w.e.f. 23.11.1985, GSR 1070(E) dated 15.11.1988, GSR 666(E)'dated 20.7.1987, GSR 870(E) dated 13.11.1992, GSR 617 (E) dated 20.9.1993 published in the Gazette of India, Extraordinary, Part II, section 3, sub section (i) w.e.f. 20.9.1993, GSR 749(E) dated 12.10.1994, published in the Gazette of India, Extraordinary Part II, section 3, sub section (i) GSR 790(E) dated 7.11.1994, GSR 121(E) dated 9.3.1995, published in the Gazette of India', Extraordinary, Part II, section 3, sub section (i) w.e.f. 9.3.1995, GSR 291(E) dated 27.3.1995 published in the Gazette of India, Extraordinary, Part II, section 3, sub section (i), GSR 581 (E) dated 23.12.1996 published in the Gazette of India, Extraordinary, Part II, section 3, sub section (i) w.e.f. 23.12.1996, GSR No. 654(E) dated 8.8.2000, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) and GSR No. 655(E) dated 8.8.2000, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i).