Regulation 35 - Date of commencement of lock in and inscription of non-transferability | Companies Act Integrated Ready Reckoner|Companies Act 2013|CAIRR

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Regulation 35 - Date of commencement of lock in and inscription of non-transferability

Effective from 26-08-2009

(1) Save as otherwise provided in this Chapter, specified securities held by promoters and
persons other than promoters shall not be transferable (hereinafter referred to as “lock-in’) from the date of allotment of the specified securities in the proposed public issue for the period stipulated in this Chapter .

(2) The certificate of specified securities which are subject to lock-in shall contain the inscription “non transferable” and the lock-in period and in case such specified securities are dematerialised, the issuer shall ensure that lock-in is recorded by the depository.

(3) Where the specified securities which are subject to lock-in are partly paid-up and the amount called-up on such specified securities is less than the amount called-up on the specified securities issued to the public, the “lock-in” shall end only on the expiry of three years after such specified securities have become pari-passu with the specified securities issued to the public.