Section 37 in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
37. Lock-in of specified securities held by persons other than promoters.
- In case of an initial public offer, the entire pre-issue capital held by persons other than promoters shall be locked-in for a period of one year:Provided that nothing contained in this regulation shall apply to:(a)equity shares allotted to employees under an employee stock option or employee stock purchase scheme of the issuer prior to the initial public offer, if the issuer has made full disclosures with respect to such options or scheme in accordance with Part A of Schedule VIII;(b)equity shares held by a venture capital fund or a foreign venture capital investor for a period of at least one year prior to the date of filing the draft prospectus with the Board:Explanation. - For the purpose of clause (b), in case such equity shares have resulted pursuant to conversion of fully paid-up compulsorily convertible securities, the holding period of such convertible securities as well as that of resultant equity shares together shall he considered for the purpose of calculation of one year period and convertible securities shall be deemed to be fully paid-up, if the entire consideration payable thereon has been paid and no further consideration is payable at the time of their conversion.
