Relaxations relating to procedural matters –Issues and Listing

Last updated: 20 January 2021

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The Securities and Exchange Board of India (SEBI) has extended certain one-time relaxations concerning procedural matters for Rights Issues. These relaxations, initially granted in May 2020 and later extended, will now apply to Rights Issues opening up to March 31, 2021. Issuers and Lead Managers must continue to adhere to specific compliance points outlined in the original circular.

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/CFD/DIL1/CIR/P/2021/13

January 19, 2021

To
All Registered Merchant Bankers
All Recognized Stock Exchanges
All Registered Registrars to an Issue
All Self Certified Syndicate Banks
All listed entities
All entities who propose to list the specified securities

Dear Sir/Madam,

Sub: Relaxations relating to procedural matters –Issues and Listing.

1. 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.

2. Based on the representations received from the market participants, the validity of these relaxations, as provided by Circular No. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 6, 2020, was further extended for Rights Issues opening upto December 31, 2020.

3. The relaxation mentioned in point (iv) of the SEBI Circular No. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 6, 2020 is further extended and shall be applicable for Rights Issues opening upto March 31, 2021 provided the issuer along with the Lead Manager(s) shall continue to comply with point (v) of the SEBI Circular No. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 06, 2020.

4. This circular shall come into force with effect from the date of issue of circular

5. This circular is issued in exercise of powers conferred by Section 11(1) read with Section 11A of the Securities and Exchange Board of India Act, 1992 read with Regulations 299 and 300 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

6. A copy of this circular is available on SEBI website at www.sebi.gov.in under the categories “Legal Framework/Circulars”.

Yours faithfully,

Rajesh Kumar D
General Manager
Corporation Finance Department
rajeshkd@sebi.gov.in

FAQ :

The circular extends relaxations related to procedural matters for Rights Issues, allowing them to open until March 31, 2021.

The initial relaxations were granted for Rights Issues opening up to July 31, 2020, and were later extended to December 31, 2020.

The relaxations are now applicable for Rights Issues opening up to March 31, 2021.

Yes, the issuer along with the Lead Manager(s) must continue to comply with point (v) of the SEBI Circular No. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 06, 2020.

This circular is addressed to all Registered Merchant Bankers, Recognised Stock Exchanges, Registered Registrars to an Issue, Self Certified Syndicate Banks, listed entities, and entities proposing to list specified securities.