Section 16B in Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
16B. Security Deposit. - (1) The issuer shall deposit, before the opening of subscription list, and keep deposited with the stock exchange(s) an amount calculated at the rate of one per cent. of the amount of securities offered for subscription to the public.
(2)The amount stipulated in sub-regulation (1) shall be deposited in the manner specified by Board and/or stock exchange(s).(3)The amount stipulated in sub-regulation (1) shall be refundable or forfeitable in the manner specified by the Board."(ii)In regulation 20, sub-regulations (2) and (3) shall be omitted.(iii)In Schedule I, in para. III, in sub-para (ii), under the heading "Delay in Dispatch of Allotment Letters or Refund Orders" after the word and sign "closure." and before the words "The issuer further agrees", the following shall be inserted, namely:-"Issuer agrees that credit to demat accounts of the allottees shall be made within two working days from the date of allotment."
