SEBI Relaxations relating to procedural matters – Issues and Listing

SEBI Relaxations relating to procedural matters – Issues and Listing OVERVIEW Securities and Exchange Board of India (SEBI) vide Circular SEBI / HO / CFD / DIL2 / CIR / P / 2020 / 78 dated 06th May, 2020 has issued Notification related to “Relaxations relating to procedural matters – Issues and Listing” in exercise of powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992. SEBI has relaxed procedure for Right Issue under few regulations.

The Circular was issued 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 specified securities

Applicability:

come into force with immediate effect. [caption id="attachment_88492" align="aligncenter" width="553"] SEBI Relaxations relating to procedural matters – Issues and Listing[/caption] SEBI has decided to grant the following one time relaxations from strict enforcement of certain regulations of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (hereafter “ICDR Regulations”), pertaining to Rights Issue opening upto July 31, 2020: [caption id="attachment_88490" align="aligncenter" width="688"] SEBI Relaxations relating to procedural matters – Issues and Listing[/caption] In respect of mechanisms as stated under SEBI circular dated January 22, 2020, SEBI introduced dematerialized rights entitlements (REs) and Regulation 76 of the ICDR Regulations, the issuer along with Lead Manager(s) shall ensure the following: • The mechanism(s) shall only be an additional option and not a replacement of the existing process. • The mechanism(s) shall be transparent, robust and have adequate checks and balances. • It should aim at facilitating subscription in an efficient manner without imposing any additional costs on investors. • The issuer along with lead manager(s), and registrar shall satisfy themselves about the transparency, fairness and integrity of such mechanism. • An FAQ, online dedicated investor helpdesk, and helpline shall be created by the issuer company along with lead manager(s) to guide investors in gaining familiarity with the application process and resolve difficulties faced by investors on priority basis. • The issuer along with lead manager(s), registrar, and other recognized intermediaries (as incorporated in the mechanism) shall be responsible for all investor complaints. Source : https://www.sebi.gov.in/legal/circulars/may-2020/relaxations-relating-to-procedural-matters-issues-and-listing_46652.html