TMI BlogEffective date of ASBA Process and clarification on clause 2.8 of SEBI (Disclosure and Investor Protection (DIP)) Guidelines, 2000X X X X Extracts X X X X X X X X Extracts X X X X ..... n SEBI/CFD/MB/IS/3/2008/29/08 August 29, 2008 To All Registered Merchant Bankers Dear Sirs, Sub.: Effective date of ASBA Process and clarification on clause 2.8 of SEBI (Disclosure and Investor Protection (DIP)) Guidelines, 2000 In exercise of the powers conferred under sub-section (1) of section 11 of the Securities and Exchange Board of India Act, 1992, all merchant b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he abovementioned banks are eligible to function as SCSBs in public issues made through book building route, opening on or after September 1, 2008. (2) Clarification on clause 2.8 of the SEBI (DIP) Guidelines, 2000 (a) Clause 2.8 of the SEBI (DIP) Guidelines, 2000 states as under: No company shall make a public or a rights issue of securities unless firm arrangements of finance throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (both within and outside India), etc. In order to make it practicable for companies raising funds for mega projects with debt funding requirement of at least ₹ 1000 crores, it has been decided that the abovementioned clause 2.8 shall be deemed to have been complied with, if the following conditions are satisfied: (i) The issuer company has obtained in-principle sanction letters for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f firm arrangements are made to the extent of ₹ 7500 crores (i.e., 75% of ₹ 10,000 crores). For meeting the gap of ₹ 7500 crores, if the promoters were to give a guarantee, the promoters must have a minimum unencumbered net worth of ₹ 22,727.28 crores. If the measurable unencumbered net worth of the promoters is less than ₹ 22,727.28 crores, then the amount of firm ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve and the capability of such promoters to fulfil their commitments. (vii) The offer document of the issuer company contains adequate disclosures about how the Lead Merchant Bankers to the Issue have satisfied themselves in this regard. (d) It is informed that in respect of cases other than that mentioned in para (c) above, the extant requirement of obtaining final sanction letter to comply ..... X X X X Extracts X X X X X X X X Extracts X X X X
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