IDBI’s unlisted share sales not a public issue: Sebi
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.
