Saturday, December 3, 2016

Cap on employees share in Public Offer raised from Rs 2 lacs to Rs 5 lacs

SEBI has amended the ICDR Regulation enabling employees to apply for shares beyond the specified limit of Rs. 2 lakh under employee reservation quota. SEBI has raised the limit of maximum shares that employees can bid in their Company’s IPO to Rs. 5 lakhs from existing limit of Rs. 2 lakhs with a view to increase investor base in listed companies. The application for shares of the value in excess of Rs 2 lakh shall be considered only in the event of undersubscription in the employee reservation portion. Further, the value of total allotment to an employee under the employee reservation portion, including the additional allotment shall
not exceed Rs 5 lakh.

No restriction on deposits in current account; Fake RBI instruction circulating in social media

Fake Circular No. RBI/2016-17/166 provides that in case of genuine deposits in Current Account banks are advised to take certificate of cash balance as on Nov. 8, 2016 duly attested by tax authorities along with details of deposits from Nov. 10, 2016 till date.

Actual Circular No. RBI/2016-17/166 provides that banks should not rely on instructions issued on unofficial channels like social media and rely on instructions uploaded on RBI’s website.