Section 72 in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
72. Conditions for preferential issue.
(1)A listed issuer may make a preferential issue of specified securities, if:(a)a special resolution has been passed by its shareholders;(b)all the equity shares, if any, held by the proposed allottees in the issuer are in dematerialised form;(c)the issuer is in compliance with the conditions for continuous listing of equity shares as specified in the listing agreement with the recognised stock exchange where the equity shares of the issuer are listed;(d)the issuer has obtained the Permanent Account Number of the proposed allottees.(2)The issuer shall not make preferential issue of specified securities to any person who has sold any equity shares of the issuer during the six months preceding the relevant date:Provided that in respect of the preferential issue of equity shares and compulsorily convertible debt instruments, whether fully or partly, the Board may grant relaxation from the requirements of this sub-regulation, if the Board has granted relaxation in terms of regulation 29A of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 to such preferential allotment.
