Securities And Exchange Board Of India - Subsection
Section 26(5) in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
(5)No issuer shall make an initial public offer if there are any outstanding convertible securities or any other right which would entitle any person any option to receive equity shares after the initial public offer:Provided that the provisions of this sub-regulation shall not apply to:(a)a public issue made during the currency of convertible debt instruments which were issued through an earlier initial public offer, if the conversion price of such convertible debt instruments was determined and disclosed in the prospectus or the earlier issue of convertible debt instruments;(b)outstanding options granted to employees pursuant to an employee stock option scheme framed in accordance with the relevant Guidance Note or Accounting Standards, if any, issued by the Institute of Chartered Accountants of India in this regard.
