Regulation 78(6) of SEBI (Issue of Capital & Disclosure Requ

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2010 In case of Preferential Allotment of Equity shares, the Pre-Preferential allotment shareholding of the allottees shall be locked in from the relevant date upto a period of six months from the date of Preferential Allotment.

So, my query is that whether it will be locked in from the relevant date upto a period of 6 months or whether it will be locked in from the date of Preferential Allotment?

Kindly give me the explanation.

CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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22 December 2010 By Cumulatively Analysis of Regulation 71 and 78(6),

As per R.78(6),the Entire pre-preferential allotment Shareholding of allottees, if any shall BE LOCKED IN FROM THE RELEVANT DATE UPTO PERIOD OF OF SIX MONTHS FROM DATE OF PREFERNTIAL ALLOTMENT.

So the Shares will be Locked 30 days prior to meeting of Shareholder ("Relevant Date") upto 6 Months from Date of Preferential Allotment.

Regards
Ankit Gulgulia

Querist : Anonymous

Querist : Anonymous (Querist)

23 December 2010 I am yet not clear with the above explanation regarding Reg 78(6) of SEBI (ICDR) Requirements, 2009. Can you pls explain with an example.

whether the shares will be locked in from the relevant date upto a period of 6 months or whether it will be locked in from the date of Preferential Allotment?

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CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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23 December 2010 Take This Date Wise Example

Facts Assumed
Date of Meeting - 31/3/2009
Rel. date (As per R.71) - 1/3/2009
Date of Preferential Allotment - 30/4/2009
6 Months from Pref. Allot - 31/10/2009

Lock In Period Will Be From :

1/3/2009 TO 31/10/2009

Regards
Ankit Gulgulia

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