The Securities and Exchange Board of India ( SEBI ) has withdrawn the Master Circular No. SEBI/HO/OIAE/IGRD/P/CIR/2022/0151 dated November 7, 2022, which related to the issuance of a No Objection Certificate (NOC) for the release of 1% of the issue amount by issuer companies.
The change follows an amendment to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations), which was officially notified on May 17, 2024. As a result, the earlier requirement to deposit 1% of the issue size, which was to be made available for subscription to the public with the designated stock exchange, has now been dispensed with.
Become PF & ESIC Pro: Basic to Advance Course – Enroll Today
Although this requirement is no longer applicable, the stock exchanges are required to frame a joint standard operating procedure (SoP) to handle the release of the 1% security deposit that was deposited by issuers before the amendments were made.
The circular, which comes into effect immediately, outlines that stock exchanges must inform all companies listed on their exchanges of these changes. They are also required to update their bylaws, rules, and regulations accordingly to ensure proper implementation of the new provisions.
Become PF & ESIC Pro: Basic to Advance Course – Enroll Today
The circular, with regards to the stock exchange has advised as follows:
“The Stock Exchanges are accordingly advised to:
a. bring the provisions of this circular to the notice of all the companies whose securities are listed in the exchange and also to disseminate the same on the website of the stock exchange.
b. make amendments to the relevant bye-laws, rules and regulations for the implementation of the terms of this circular, if necessary.”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
