Securities And Exchange Board Of India - Subsection
Section 26(2) in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
(2)An issuer not satisfying any of the conditions stipulated in sub-regulation (1) may make an initial public offer if:(a)(i)the issue is made through the book building process and the issuer undertakes to allot at least fifty per cent. of the net offer to public to qualified institutional buyers and to refund full subscription monies if it fails to make allotment to the qualified institutional buyers ;or(ii)at least fifteen per cent. of the cost of the project is contributed by scheduled commercial banks or public financial institutions, of which not less than ten per cent. shall come from the appraisers and the issuer undertakes to allot at least ten per cent. of the net offer to public to qualified institutional buyers and to refund full subscription monies if it fails to make the allotment to the qualified institutional buyers;(b)(i)the minimum post-issue face value capital of the issuer is ten crore rupees;or(ii)the issuer undertakes to provide market-making for at least two years from the date of listing of the specified securities, subject to the following:(A)the market makers offer buy and sell quotes for a minimum depth of three hundred specified securities and ensure that the bid-ask spread for their quotes does not, at any time, exceed ten per cent.;(B)the inventory of the market makers, as on the date of allotment of the specified securities, shall be at least five per cent. of the proposed issue.
