valid as on 19/10/2020

Regulation 33 - Securities ineligible for minimum promoters’ contribution
Effective from 26-08-2009

(1) For the computation of minimum promoters’ contribution, the following specified securities shall not be eligible:

(a) specified securities acquired during the preceding three years, if they are:

(i) acquired for consideration other than cash and revaluation of assets or capitalisation of intangible assets is involved in such transaction; or

(ii) resulting from a bonus issue by utilisation of revaluation reserves or unrealised profits of the issuer or from bonus issue against equity shares which are ineligible
for minimum promoters’ contribution;

(b) specified securities acquired by promoters during the preceding one year at a price lower than the price at which specified securities are being offered to public in the initial public offer:
Provided that nothing contained in this clause shall apply:

(i) if promoters pay to the issuer, the difference between the price at which specified securities are offered in the initial public offer and the price at which the specified securities had been acquired;

(ii) if such specified securities are acquired in terms of the scheme under sections 391-394 of the Companies Act, 1956, as approved by a High Court, by promoters in lieu of business and invested capital that had been in existence for a period of more than one year prior to such approval;

(iii) to an initial public offer by a government company, statutory authority or corporation or any special purpose vehicle set up by any of them, which is engaged in infrastructure sector;

(c) specified securities allotted to promoters during the preceding one year at a price less than the issue price, against funds brought in by them during that period, in case of an issuer formed by conversion of one or more partnership firms, where the partners of the erstwhile partnership firms are the promoters of the issuer and there is no change in the management:
Provided that specified securities, allotted to promoters against capital existing in such firms for a period of more than one year on a continuous basis, shall be eligible;

(d) specified securities pledged with any creditor.

(2) Specified securities referred to in clauses (a) and (c) of sub-regulation (1) shall be eligible for the computation of promoters’ contribution, if such securities are acquired pursuant to a scheme which has been approved under sections 391-394 of the Companies Act, 1956.

Explanation: For the purposes of clause (b) of sub-regulation (1), the term “infrastructure sector” includes the facilities or services as specified in .

Inserted vide SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2012, w.e.f. 12.10.2012. To view the notification,Click Here
Inserted vide SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2012, w.e.f. 12.10.2012. To view the notification,Click Here
Inserted vide SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2012, w.e.f. 12.10.2012. To view the notification,Click Here
To view the schedule,Click Here

ICDR – Schedule X

[See Explanation to regulations 26(6), 31, 33(1)(b) and 41(2)(b)]

For the purposes of these regulations, the expression ―infrastructure sector shall include the following facilities/services:

(1) Transportation (including inter modal transportation), including the following:

(a) Roads, national highways, state highways, major district roads, other district roads and village roads, including toll roads, bridges, highways, road transport providers and other road-related services;

(b) Rail system, rail transport providers, metro rail roads and other railway related services;

(c) Ports (including minor ports and harbours), inland waterways, coastal shipping including shipping lines and other port related services;

(d) Aviation, including airports, heliports, airlines and other airport related services;

(e) Logistics services;

(2) Agriculture, including the following:

(a) Infrastructure related to storage facilities;
(b) Construction relating to projects involving agro-processing and supply of inputs to
(c) Construction for preservation and storage of processed agro-products, perishable goods such as fruits, vegetables and flowers including testing facilities for quality;

(3) Water management, including the following:

(a) Water supply or distribution;
(b) Irrigation;
(c) Water treatment, etc.

(4) Telecommunication, including the following:

(a) Basic or cellular, including radio paging;
(b) Domestic satellite service (i.e., satellite owned and operated by an Indian company for providing telecommunication service);
(c) Network of trunking, broadband network and internet services;

(5) Industrial, Commercial and Social development and maintenance, including the following:

(a) Real estate development, including an industrial park or special economic zone;
(b) Tourism, including hotels, convention centres and entertainment centres;
(c) Public markets and buildings, trade fair, convention, exhibition, cultural centres, sports and recreation infrastructure, public gardens and parks;
(d) Construction of educational institutions and hospitals;
(e) Other urban development, including solid waste management systems, sanitation and sewerage systems, etc.;

(6) Power, including the following:

(a) Generation of power through thermal, hydro, nuclear, fossil fuel, wind and other
renewable sources;
(b) Transmission ,distribution or trading of power by laying a network of new transmission or distribution lines;

(7) Petroleum and natural gas, including the following:

(a) Exploration and production;
(b) Import terminals;
(c) Liquefaction and re-gasification;
(d) Storage terminals;
(e) Transmission networks and distribution networks including city gas infrastructure;

(8) Housing, including the following:

(a) Urban and rural housing including public / mass housing, slum rehabilitation etc;
(b) Other allied activities such as drainage, lighting, laying of roads, sanitation facilities etc.;

(9) Services provided by recognised stock exchanges and registered depositories, in relation to securities

(10) Other miscellaneous facilities/services, including the following:

(c) Mining and related activities;
(d) Technology related infrastructure;
(e) Manufacturing of components and materials or any other utilities or facilities required by the infrastructure sector like energy saving devices and metering devices, etc;
(f) Environment related infrastructure;
(g) Disaster management services;
(h) Preservation of monuments and icons;
(i) Emergency services (including medical, police, fire, and rescue);

(11) Such other facility/service which, in the opinion of the Board, constitutes infrastructure sector.

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