SEBI amends DIP Guidelines to restrict the benefit of no lock-in for Venture Capital Funds or Foreign Venture Capital Investors

SEBI has amended SEBI (Disclosure and Investor Protection) Guidelines 2000 to provide that the benefit of ‘no lock-in’ on the pre-issue shares of an unlisted company making an Initial Public Offering (IPO), currently available to the shares held by Venture Capital Funds (VCFs) / Foreign Venture Capital Investors (FVCIs) registered with SEBI shall be limited to:

(a) the shares held by VCFs or FVCIs registered with SEBI, for a period of at least one year as on the date of filing draft prospectus with SEBI

and

(b) the shares issued to SEBI registered VCFs/ FVCIs upon conversion of convertible instruments during the period of one year prior to the date of filing draft prospectus with SEBI provided that the period of holding such convertible instruments as fully paid up, together with the period of holding shares resulting from conversion, by the VCFs and FVCIs, is at least one year as on the date of filing the draft prospectus with SEBI.

Source : Equity Bulls

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