Companies Act

MCA relaxes dispatch of notice by listed companies for rights issues opening upto 31.12.2020

MCA relaxes dispatch of notice u/s 62(2) of Companies Act, 2013 by listed companies for rights issues opening upto 31st December, 2020

inability to dispatch the relevant notice to shareholders through registered post or speed post or courier would not be viewed as violation of section 62(2) of the Act for rights issues opening upto 31st December, 2020.

General Circular No. 27/2020

F. No. 2/4/2020-CL-V
Government of India
Ministry of Corporate Affairs

5th Floor, ‘A’ Wing, Shastri Bhawan,
Dr. R. P. Road, New Delhi
Dated: 3rd August , 2020

To
All  Regional  Directors,
All Registrar of Companies, All  Stakeholders.

Subject: Clarification on dispatch of notice under section 62(2) of Companies Act, 2013 by listed companies for rights issues opening upto 31st December, 2020.

Sir/Madam,

Reference is drawn to this Ministry’s General Circular Number 21/2020 dated 11th May, 2020 regarding clarification on dispatch of notice under section 62(2) of Companies Act, 2013 by listed companies for rights issue opening upto 31st July, 2020..

Representations have been received for extending the validity of such clarification. The Circular (Number SEBI/HO/CFD/DIL1/CIR/P/2020/ 136) issued by SEBI  on  24th July, 2020 has also been considered. In view of this, it has been decided that clarification given under para 2 of General Circular 21/2020 dated 11th May, 2020, would continue to be applicable for rights issues, in case of listed companies, opening upto 31st December, 2020.

Accordingly, in case of listed companies, which comply with relevant circulars issued by SEBI, inability to dispatch the relevant notice to shareholders through registered post or speed post or courier would not be viewed as violation of section 62(2) of the Act for rights issues opening upto 31st December, 2020. Other requirement provided in the said General Circular remain unchanged.

2. This issues with the  approval of the competent authority.

Yours faithfully,

(K. M. S. Narayanan)
Assistant Director (Policy)

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