MCA allows negative-net-worth companies to list with QIB allocation
In short
MCA has allowed companies with negative net worth to list, if 75% of the issue is allocated to QIBs. It has also revised Form LEAP-1 and replaced the word “shares” with “instruments.”
What the reporting says
The reported circular also replaces the word “shares” with “instruments” to include debentures and preference shares. The change updates the listing framework for such issuers and broadens the instrument wording.
Why it matters
MCA has issued a circular allowing companies with negative net worth to list, subject to 75% allocation to QIBs and a revised Form LEAP-1. The update affects listing rules and the eligible securities framework.