Mumbai: The Securities and Exchange Board of India(Sebi) has clarified that IDBI Bank can sell shares of unlisted companies to identified non-qualified institutional buyers through privately negotiated deals without the transactions being treated as deemed public issues.In an informal guidance letter issued on Friday, Sebi said secondary transfers of unlisted equity shares to identified investors would not amount to a deemed public offer, provided the transactions comply with private placement provisions of the Companies Act.The clarification came in response to a request from IDBI Bank, which holds stakes in unlisted companies acquired through loan restructuring, invocation of pledged shares, direct investments, among others.
IDBI's unlisted share sales not a public issue: Sebi
Sebi has clarified that IDBI Bank can sell unlisted shares privately. These transactions will not be considered public issues by the regulator. This clarification allows for privately negotiated deals with identified buyers. IDBI Bank sought this guidance for its holdings in unlisted companies. The move facilitates secondary transfers of equity shares under specific conditions.
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