(1)

The issuer may mention a price or a price band in the offer document (in case of a fixed price issue) and a floor price or a price band in the red herring prospectus (in case of a book built issue) and determine the price at a later date before [filing] [Substituted 'registering' by Notification No. SEBI/LAD-NRO/GN/2020/1, dated 1.1.2020 (w.e.f. 11.9.2018).] the prospectus with the Registrar of Companies:

Provided that the prospectus [filed] [Substituted 'registered' by Notification No. SEBI/LAD-NRO/GN/2020/1, dated 1.1.2020 (w.e.f. 11.9.2018).] with the Registrar of Companies shall contain only one price or the specific coupon rate, as the case may be.

(2)

The cap on the price band, and the coupon rate in case of convertible debt instruments, shall be less than or equal to one hundred and twenty per cent. of the floor price.

(3)

The floor price or the final price shall not be less than the face value of the specified securities.

(4)

Where the issuer opts not to make the disclosure of the floor price or price band in the red herring prospectus, the issuer shall announce the floor price or the price band at least two working days before the opening of the issue in the same newspapers in which the pre-issue advertisement was released or together with the pre-issue advertisement in the format prescribed under Part A of Schedule X.

(5)

The announcement referred to in sub-regulation (4) shall contain relevant financial ratios computed for both upper and lower end of the price band and also a statement drawing attention of the investors to the section titled "basis of issue price " of the offer document.

(6)

The announcement referred to in sub-regulation (4) and the relevant financial ratios referred to in sub-regulation (5) shall be disclosed on the websites of the stock exchange(s) and shall also be pre-filled in the application forms to be made available on the websites of the stock exchange(s).