(Disclosure and Investor Protection) Guidelines, 2000

DIP Guidelines 2000 (Updated till September 19, 2005) · 2005-09-19 · SEBI

Summary

This part of the document establishes the short title, commencement date, and legal authority for the SEBI (Disclosure and Investor Protection) Guidelines, 2000. It provides a comprehensive list of definitions for key terms used throughout the regulations, such as 'Abridged Prospectus', 'Board', and 'Book Building'. Additionally, it defines specific entities and mechanisms including 'Designated Stock Exchange', 'Employee', and 'Green Shoe Option' to ensure precise application of the guidelines. This section defines key terms such as Guidelines, Infrastructure Company, Issuer Company, and Merchant Banker used throughout the document. It establishes the applicability of these guidelines to public issues, offers for sale, and rights issues by listed and unlisted companies. Furthermore, it outlines eligibility norms requiring companies to file draft offer documents with SEBI at least 21 days prior to filing with regulatory authorities. The document mandates that no company can make a public issue of securities without applying for listing on a stock exchange. It requires companies to dematerialize securities and offer investors the choice between physical certificates and dematerialize

Text

These Guidelines have been issued by the Securities and Exchange Board of India under Section 11 of the Securities and Exchange Board of India Act, 1992. These Guidelines may be called the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000. These Guidelines shall come into force from the date specified by the Board.

"Abridged Prospectus" means the memorandum as prescribed in Form 2A under Sub-section (3) of Section 56 of the Companies Act, 1956;

"Act" means the Securities and Exchange Board of India Act, 1992 (15 of 1992);

"Advertisement" includes notices, brochures, pamphlets , circulars, show cards, catalogues, hoardings, placards, posters, insertions in newspaper, pictures, films, cover pages of offer documents or any other print medium, radio, television programmes through any electronic medium;

"Board" means the Securities and Exchange Board of India established under provisions of Section 3 of the Act;

"Book Building" means a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document;

"Collection Centre" means a place where the application for subscribing to the public or rights issue is collected by the Banker to an Issue on behalf of the issuer company;

"Company" means the Company defined in Section 3 of the Companies Act, 1956;

"Composite Issues" means an issue of securities by a listed company on a public cum rights basis offered through a single offer document wherein the allotment for both public and rights components of the issue is proposed to be made simultaneously;

"Credit Rating Agency" means a body corporate registered under Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999;

"Designated Financial Institution" means the public financial institution included in or notified under Section 4A of the Companies Act, Industrial Development Corporation established by State Governments and financial institutions approved under Section 36(1)(viii) of Income Tax Act, 1961;

"Debt-Instrument" means an instrument which creates or acknowledges indebtedness, and includes debenture, stock, bonds and such other securities of a body corporate, whether constituting a charge on the assets of the body corporate or not;

Source: SecMarx — (Disclosure and Investor Protection) Guidelines, 2000. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.