To ease and facilitate investors, the relaxation mentioned in point (iv) of SEBI Circular No. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated 06th May 2020, is further extended and shall be applicable for Rights Issues opening up to September 30, 2021, provided that 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).

Point no. (iv) of above said circular is as under :

(iv) In terms of Regulation 76 of the ICDR Regulations, an application for a rights  issue  shall  be  made  only  through  ASBA  facility.  In  view  of  the difficulties   faced   due   to   COVID-19   pandemic   and   the   lockdown measures, and  in order to ensure that all eligible shareholders are able to apply to rights issue during such times, the issuer shall along with lead manager(s)to   the   issue,   the   registrar, and   other recognized intermediaries[as deemed fit by issuer and lead manager(s)]institute an optional mechanism(non-cash mode only)to accept the applications of the shareholders subject to ensuring that no third party payments shall be allowed in respect of any application.

For official SEBI circular regarding extension, click here.


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