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MCA issues Clarification on dispatch of Notice by Listed entities for Rights issue opening upto 31st December, 2020

MCA - dispatch notice - rights issue- Taxscan

The Ministry of Corporate Affairs (MCA) on Monday issued a clarification on dispatch of notice by Listed entities for rights issue opening under section 62(2) of Companies Act, 2013 up to 31st December 2020.

The Ministry has received the representation for the extension of the validity of the clarification dated May 11, 2020.

“In view of this it has been decided that clarification was given under para 2 of General Circular 21/2020 dated 11th May 2020, would continue to be applicable for rights issues, in case of listed companies, opening up to 31 December 2020,” the circular said while considering the circular issued by SEBI on July 23, 2020

“Accordingly, in case of listed companies, which comply with relevant circulars issued by SEBI, inability to dispatch the relevant notice to shareholders through registered post or speed post or courier would not be viewed as a violation of section 62(2) of the Act for rights issue opening up to 31 December 2020. Other requirements provided in the said General Circular remain unchanged,” the Ministry said.

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