Geetika talreja ( Gondia )
05-Sep-2026 05:17 PM
ICDR
Sir I want to ask in ICDR, topic promoters contribution it states that promoters shall hold atleast 20% of the post issue capital and in case of shortfall can contributed by that 7 helpers to maximum 10% but what if promoter itself does not even has 10% in that case, can helpers contribute more than 10%?
Hello Geetika. Conclusion to your query: No. As per provision the helpers can only help upto 10 % out of that 20 % limit. The promoters has to mandatorily contribute the 10% of post issue. Under Regulation 14(1) of SEBI ICDR, the total Minimum Promoter Contribution (MPC) required is 20% of the post-issue capital. If the promoters hold less than 20% (a shortfall), specified entities—such as Alternative Investment Funds (AIFs), Foreign Venture Capital Investors (FVCIs), Scheduled Commercial Banks, Insurance Companies, Public Financial Institutions, or eligible 5%+ non-individual shareholders—can contribute to fulfill the shortfall up to a maximum of 10% of the post-issue capital. Under no circumstances can these entities contribute more than 10% toward the MPC requirement.
Answer given by Shubhamm Sir at 12-Sep-2026 10:57 AM