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Issue of Shares

To issue shares, whether frequently or infrequently traded, a listed company must comply with the pricing regulations outlined in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended up to May 23, 2023.

As part of this compliance, the company is required to obtain a valuation report from a Registered Valuer.

Issue of shares for Unlisted Companies

Compliance SEBI Regulations:
  • small-tic SEBI Regulations are not applicable to Unlisted Companies. However, the issue of securities are guided by Companies Act 2013 and Income Tax Act 1961, in case of unlisted companies.
  • small-tic Valuation Certificate requirement: There is no requirement under SEBI Regulations due to non-applicability of SEBI Regulations.

Issue of shares for Listed Companies

Compliance SEBI Regulations:
  • small-tic Governed by SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended up to May 23, 2023.
  • small-tic Valuation Certificate requirement: Valuation Report is mandated under applicable provisions from a Registered Valuer.

Key Points to Consider

01

Which is the governing law for Unlisted

Not Applicable

02

Which is the governing law for listed

SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

03

Who does the Valuation

Registered Valuer

04

When valuation is required

At the time of the Issue of Securities

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