SEBI(ICDR) Regulation,2009 provide various rules and regulations for the issue. Since it involves promoters,public and various institutions and their funds, rules have to be stronger so that fund has the right direction benefitting to the investors and economy as well.
For the specified kind of issues, SEBI(ICDR) Regulations,2009 provides that a particular amount should be contributed by promoters. This amount is called Promoter’s contribution. But who are covered under the term “Promoter” under this regulation?
As per Regulation 2(1)(za) of SEBI(ICDR) Regulation,2009 –“promoter” includes:
- the person or persons who are in control of the issuer;
- the person or persons who are instrumental in the formulation of a plan or programme pursuant to which specified securities are offered to public;
- the person or persons named in the offer document as promoters:
Here is a Quiz to test your knowledge on Promoters and their contribution.