Glossary
General corporate purposes
The part of an issue's proceeds not tied to a named object, which for an SME issue is capped at fifteen per cent of the amount raised or INR 10 crore, whichever is lower.
General corporate purposes is the heading an offer document uses for proceeds that are not allocated to a specific, quantified object. For an SME issue, regulation 230 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended with effect from 4 March 2025, caps it at fifteen per cent of the amount raised or INR 10 crore, whichever is lower.
The cap pushes everything else into named objects. Working capital and capital expenditure have to be stated as objects with quantified deployment, so fifteen per cent is not headroom. The same regulation prohibits an issue whose objects include repaying a loan from a promoter, the promoter group or any related party, directly or indirectly. In the illustration in our note of 21 September 2026, a INR 30 crore issue carries a general corporate purposes cap of INR 4.50 crore.
Used in
Sources
Cite this termGeneral corporate purposes. Juris Eagle glossary. Stated as at 21 September 2026. https://juriseagle.com/glossary/general-corporate-purposes