What is ICDR Regulation…….?

✓ New issue or a listed issuer.

✓ come into force 26th august,2009.
✓ Promote development of healthy capital
✓ To protect interest of investors in securities.
How did The Regulation Come into force…?

➢ Matters related to issue of capital

➢ transfer of securities
➢ sec 11(1)(a) Over a DIP guidelines.
ICDR DOES NOT REGULATE THE
FOLLOWING

▪ Public issue of debt securities .

▪ issue of ADRs / GDRs.
▪ Issue of fCCBs.
▪ Issue of shares pursuant to ESCOP’s.
 RIGHT ISSUE

PUBLIC ISSUE PREFERENCIA

L ISSUE

ICDR
applies
to
ISSUE OF ISSUE OF
BONUS IDR’S
SHARES

QIP
Right issue
▶ Offer of specified securities by listed issuer to its
shareholder.

▶ Condition for right issue:-

Preferential issue
▶ Issue of specified secueities by a listed issuer to
selected person or group of persons on a private
placement basis.

▶ Condition for Preferential issue :-

Issue of IDR’s
▶ IDR’s is financial instrument which enable foreign
companies to raise funds from the Indian securities
market.

▶ Condition for Indian depository receipt :-

QIP
▶ Qualified institutional Placement means allotment of
eligible securities to QIB on private Placement basis.

▶ Condition of QIP:-
Issue of Bonus shares
▶ An offer of free additional shares to existing
shareholders.

▶ Conditions for bonus issue:-

Public issue
▶ Public issue means IPO or FPO.

1. Condition of IPO
2. Condition of FPO