SEBI

SEBI relaxes procedural matters related to Issues and Listing

SEBI relaxes procedural matters related to Issues and Listing

SEBI vide Circular no. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 6, 2020, granted one time relaxations from strict enforcement of certain regulations of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, pertaining to Rights Issue opening upto July 31, 2020.

Based on the representations received from the market participants, the validity of these relaxations was further extended for Rights Issues opening upto December 31, 2020,vide SEBI Circular No. SEBI/HO/CFD/DIL1/CIR/P/2020/136 dated July 24, 2020.

The relaxation mentioned in point (iv) of the said SEBI Circular dated May 6, 2020, was further extended vide SEBI Circular No. SEBI/HO/CFD/DIL1/CIR/P/2021/13 dated January 19, 2021, for Rights Issues opening upto March 31, 2021. This was further extended for Rights Issues opening upto September 30, 2021, vide SEBI Circular No. SEBI/HO/CFD/DIL2/CIR/P/2021/552 dated April 22, 2021.

To ease and facilitate investors, the relaxation mentioned in point (iv) of the said SEBI Circular dated May 6, 2020 related to submission of application for a rights  issue  only  through  ASBA  facility is further extended and shall be applicable for Rights Issues opening upto March 31, 2022, provided that the issuer along with the Lead Manager(s) shall continue to comply with point (v) of the said SEBI Circular dated May 06, 2020.

With respect to mechanism and compliance requirements at point (iv) and (v) of the SEBI Circular dated May 6, 2020, and para 5 of the said SEBI Circular dated April 22, 2021,the issuer along with Lead Manager(s), Registrar, and other recognized intermediaries (as incorporated in the mechanism)shall also ensure the following:

Issuer Company shall conduct a Vulnerability Test for optional mechanism (non-cash mode only) provided to accept the applications in Rights Issue (facility provided by RTA), from an independent IT Auditor, and submit the report to Stock Exchange(s)

Download SEBI Circular SEBI/HO/CFD/DIL2/CIR/P/2021/633 Click Here >>

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