On March 20, 2025, the Securities Exchange Board of India (“SEBI”), issued a consultation paper on the amendments to Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“ICDR Regulations”), and Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (“SBEB & SE Regulations”), with the objective of streamlining certain processes and providing clarifications related to requirements of a public issue (“Consultation Paper”)[1]. The Consultation Paper invites public comments and suggestions, to be submitted at the latest by April 10, 2025.
This Consultation Paper seeks comments/ suggestions from the public on the following proposals relating to the amendments to the ICDR Regulations and the SBEB & SE Regulations:
- Minimum holding period for Equity Shares to be eligible for Offer for Sale (OFS) in public issue.
- Clarification on ESOPs granted prior to filing of DRHP to founders who are classified as promoters at the time of filing of DRHP.
[1] https://www.sebi.gov.in/reports-and-statistics/reports/mar-2025/consultation-paper-on-certain-amendments-to-sebi-icdr-regulations-2018-icdr-regulations-and-sebi-sbeb-and-se-regulations-2021-sbeb-regulations-_92773.html