Securities And Exchange Board Of India - Subsection
Section 158(6) in The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
(6)The provisions of this Chapter shall not apply where the preferential issue of specified securities is made to the lenders pursuant to conversion of their debt, as part of a debt restructuring [***] [Omitted 'scheme' by Notification No. SEBI/LAD-NRO/GN/2019/05, dated 29.3.2019 (w.e.f. 11.9.2018).] implemented in accordance with the guidelines specified by the Reserve Bank of India, subject to the following conditions:(a)guidelines for determining the conversion price have been specified by the Reserve Bank of India in accordance with which the conversion price shall be determined and which shall be in compliance with the applicable provisions of the Companies Act, 2013;(b)conversion price shall be certified by two independent valuers;(c)specified securities so allotted shall be locked-in for a period of one year from the date of their allotmentProvided that for the purpose of transferring the control, the lenders may transfer the specified securities allotted to them before completion of the lock-in period subject to continuation of the lock-in on such securities for the remaining period, with the transferee;(d)the lock-in of equity shares allotted pursuant to conversion of convertible securities issued on preferential basis shall be reduced to the extent the convertible securities have already been lockedin;(e)the applicable provisions of the Companies Act, 2013 are complied with, including the requirement of a special resolution.[Explanation. - For the purpose of this sub-regulation, "lenders" shall mean all scheduled commercial banks (excluding Regional Rural Banks) and All India Financial Institutions.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2019/05, dated 29.3.2019 (w.e.f. 11.9.2018).][***] [Omitted '(7)' by Notification No. SEBI/LAD-NRO/GN/2019/05, dated 29.3.2019 (w.e.f. 11.9.2018).]
