Master Circular on issuance of No Objection Certificate (NOC) for release of 1% of Issue Amount

Last updated: 09 November 2022

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This master circular from SEBI outlines the process for companies to obtain a No Objection Certificate (NOC) for the release of 1% of their issue amount. This deposit is mandated under SEBI regulations before public subscription opens. The application for the NOC must be submitted by the Post Issue Lead Merchant Banker after a specified period post-listing, provided all issue-related complaints are resolved.

Securities and Exchange Board of India Circular No. SEBI/HO/OIAE/IGRD/P/CIR/2022/0151 Date: November 07, 2022 To All Companies whose securities are listed on SEBI recognized Stock Exchanges (Through the Stock Exchanges) All recognized Stock Exchanges All registered Merchant Bankers

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FAQ :

The 1% deposit is mandated by SEBI regulations to be made with the designated stock exchange before the opening of subscription lists. This amount is released to the issuer after obtaining a No Objection Certificate (NOC) from SEBI.

The application for the NOC must be filed by the Post Issue Lead Merchant Banker (PILMB).

An application for the NOC can be submitted to SEBI after the expiry of 2 months from the date of listing on the latest stock exchange that permitted listing.

The PILMB can only apply for the NOC if all issue-related complaints have been resolved by the PILMB or the issuer. Additionally, any bank guarantees forming part of the 1% deposit must have a residual validity of at least 2 months, and all ASBA accounts must be unblocked.

SEBI will issue the NOC after confirming that complaints received via SCORES against the issuer have been resolved, Action Taken Reports have been submitted, and fees due to intermediaries, including ASBA Banks, have been paid.

This master circular rescinds SEBI circulars dated November 25, 2009, November 30, 2015, and July 05, 2021.