Section 242: Pledge of locked-in specified securities

Q: What does Section 242 of The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR) deal with?

Section 242 ICDR pertains to "Pledge of locked-in specified securities". It is part of the The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, a legislation enacted by the Parliament of India. Section 242 of The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR) governs pledge of locked-in specified securities. As verified on 19 May 2026.

Q: Is Section 242 ICDR still in force?

Yes, Section 242 of the The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 is currently in force across the Republic of India.

Q: What is धारा 242 ICDR?

धारा 242 ICDR is the Devanagari Hindi reference for Section 242 of the The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Section 242 of The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR) governs pledge of locked-in specified securities. As verified on 19 May 2026.

Q: What is Dhara 242 ICDR?

Dhara 242 ICDR is the Roman Hindi reference for Section 242 of the The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. "Dhara" means "Section" in Hindi. Section 242 of The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR) governs pledge of locked-in specified securities. As verified on 19 May 2026.

Q: How to cite Section 242 of The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018?

Cite as: "Section 242, The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR)" in legal briefs. For academic writing, use the BlueBook format: The SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, § 242 (India).

Law on Tips Editorial Board

- Specified securities held by the promoters and locked-in may be pledged as a collateral security for a loan granted by a scheduled commercial bank or a public financial institution or a systemically important non-banking finance company or a housing finance company, subject to the following:

(a) if the specified securities are locked-in in terms of clause (a) of regulation 238, the loan has been granted to the issuer company or its subsidiary(ies) for the purpose of financing one or more of the objects of the issue and pledge of specified securities is one of the terms of sanction of the loan;

(b) if the specified securities are locked-in in terms of clause (b) of regulation 238 and the pledge of specified securities is one of the terms of sanction of the loan.