Section 114 in The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
114. 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 these 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 pledged with any creditor other than those for borrowings by the issuer or its subsidiaries.(2)Specified securities referred to in clauses (a) 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 by the High Court under section 391 to 394 of the Companies Act, 1956 or approved by a tribunal or the Central Government under section 230 to 234 of the Companies Act, 2013.
