Section 70 in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
70. Chapter VII not to apply in certain cases.
(1)The provisions of this Chapter shall not apply where the preferential issue of equity shares is made:(a)pursuant to conversion of loan or option attached to convertible debt instruments in terms of sub-sections (3) and (4) of sections 81 of the Companies Act, 1956;(b)pursuant to a scheme approved by a High Court under section 391 to 394 of the Companies Act, 1956;(c)[ ***] [Omitted by Notification No. SEBI/LAD-NRO/GN/2018-22, dated 31.5.2018 (w.e.f 26.8.2009)](1A)[ The provision of this Chapter, except the lock-in provision, shall not apply where the preferential issue of specified securities is made in terms of the rehabilitation scheme approved by the Board of Industrial and Financial Reconstruction under the Sick Industrial Companies (Special Provision) Act, 1985 (1 of 1986) or the resolution plan approved under section 31 of the Insolvency and Bankruptcy Code, 2016 (No. 31 of 2016) whichever applicable.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018-22, dated 31.5.2018 (w.e.f 26.8.2009).](2)The provisions of this Chapter relating to pricing and lock-in shall not apply to equity shares allotted to any financial institution within the meaning of sub-clauses (ia) and (ii) of clause (h) of section 2 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of 1993).(3)The provisions of regulation 73 and regulation 76 shall not apply to a preferential issue of equity shares and compulsorily convertible debt instruments, whether fully or partly, where the Board has granted relaxation to the issuer in terms of regulation 29A of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, if adequate disclosures about the plan and process proposed to be followed for identifying the allottees are given in the explanatory statement to notice for the general meeting of shareholders.
