IPO Guide - Part 1
What is the meaning of promoter in SEBI ICDR Under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 , the definition of a "promoter" is central to determining who controls the issuer and who is subject to lock-in requirements. The term is defined under Regulation 2(1)(oo) . A person or entity is classified as a promoter if they fall into any of the following three categories: 1. Named in the Offer Documents Any person who has been named as a promoter in the Draft Red Herring Prospectus (DRHP) , Red Herring Prospectus (RHP) , or Prospectus . This also includes individuals named as promoters in the annual return of the company (as per Section 92 of the Companies Act, 2013). 2. Control over the Issuer Anyone who has "control" over the affairs of the issuer, whether directly or indirectly. This control can be exercised in various capacities: As a shareholder. As a director. Through an agreement or any other manner. 3. Direction and Inst...