Section 33 in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
33. Securities ineligible for minimum promoters' contribution.
(1)For the computation of minimum promoters' contribution, the following specified securities shall not be eligible:(a)specified securities acquired during the preceding three years, if they are:(i)acquired for consideration other than cash and revaluation of assets or capitalisation of intangible assets is involved in such transaction; or,(ii)resulting from a bonus issue by utilisation of revaluation reserves or unrealised profits of the issuer or from bonus issue against equity shares which are ineligible for minimum promoters' contribution;(b)specified securities acquired by promoters during the preceding one year at a price lower than the price at which specified securities are being offered to public in the initial public offer:Provided that nothing contained in this clause shall apply:(i)if promoters pay to the issuer, the difference between the price at which specified securities are offered in the initial public offer and the price at which the specified securities had been acquired;(ii)if such specified securities are acquired in terms of the scheme under sections 391-394 of the Companies Act, 1956, as approved by a High Court, by promoters in lieu of business and invested capital that had been in existence for a period of more than one year prior to such approval;(iii)to an initial public offer by a government company, statutory authority or corporation or any special purpose vehicle set up by any of them, which is engaged in infrastructure sector;(c)specified securities allotted to promoters during the preceding one year at a price less than the issue price, against funds brought in by them during that period, in case of an issuer formed by conversion of one or more partnership firms, where the partners of the erstwhile partnership firms are the promoters of the issuer and there is no change in the management:Provided that specified securities, allotted to promoters against capital existing in such firms for a period of more than one year on a continuous basis, shall be eligible;(d)specified securities pledged with any creditor.(2)Specified securities referred to in clauses (a) and (c) of sub-regulation (1) shall be eligible for the computation of promoters' contribution, if such securities are acquired pursuant to a scheme which has been approved under sections 391-394 of the Companies Act, 1956.Explanation. - For the purposes of clause (b) of sub-regulation (1), the. term "infrastructure sector" includes the facilities or services as specified in Schedule X.
