**Summary:**
This circular, SEBIHOOIAEIGRDCIRP2021588, issued by the Securities and Exchange Board of India (SEBI) on July 5, 2021, amends the guidelines for obtaining a No Objection Certificate (NOC) for the release of 1% of an issue amount. It modifies Circular No. CIROIAE12009 dated November 25, 2009.
The key change is a reduction in the waiting period after listing before an issuer company can apply for the NOC. The application submission timeframe is reduced from 4 months to 2 months after listing on the exchange that last permitted listing. This reduction is conditional on the resolution of all issue-related complaints by the merchant banker and issuer.
Furthermore, the circular mandates that the merchant banker must submit a certificate confirming that all Self Certified Syndicate Banks (SCSBs) involved in the Application Supported by Blocked Amount (ASBA) process have unblocked ASBA accounts. Applications lacking this confirmation will be considered incomplete.
Stock Exchanges are directed to inform all listed companies of these provisions and disseminate the circular on their websites.
This circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect investor interests, promote market development, and regulate the securities market. The circular is available on the SEBI website (www.sebi.gov.in) under Legal Circulars.
For further information, contact Medha Sonparote, General Manager, Investor Grievance Redressal Division, Office of Investor Assistance and Education, at Tel No. 022 26449312.
Key Entities Referenced
SEBI: Securities and Exchange Board of India, the regulator of the securities market in India.
Stock Exchanges: SEBI recognized Stock Exchanges in India on which companies' securities are listed.
Merchant Bankers: Registered Merchant Bankers involved in the issuance of securities.
No Objection Certificate: A certificate issued by SEBI for the release of 1% of the issue amount.
Circular No. CIROIAE12009: A previous SEBI circular dated November 25, 2009, related to obtaining NOC for release of 1% of issue amount.
ASBA: Applications Supported by Blocked Amount, a process related to IPO applications.
SCSBs: Self Certified Syndicate Banks involved in ASBA process.
Securities and Exchange Board of India Act, 1992: The act under which SEBI exercises its powers.
CIRCULAR
SEBI/HO/OIAE/IGRD/CIR/P/2021/588
05 July, 2021
To,
All companies whose securities are listed on SEBI recognized Stock Exchanges (through
Stock Exchanges)
All recognized Stock Exchanges
All registered Merchant Bankers
Dear Sir/ Madam,
Sub: Issue of No Objection Certificate for release of 1% of Issue amount
1. Please refer to Circular No. CIR/OIAE/1/2009 dated November 25, 2009, where in SEBI
had laid down guidelines for obtaining NOC for release of 1% of issue amount. As per
point 2 of the said circular, the issuer company is required to submit an application on its
letter head addressed to SEBI in the format specified in Annexure – A, after lapse of 4
months from listing on the Exchange which was the last to permit listing, for the purpose
of obtaining the NOC.
2. It has been decided to reduce the time period after listing for submitting the application to
2 months from the existing period of 4 months as stated in above mentioned circular. The
same is subject to the condition that all issue related complaints have been resolved by
the merchant banker/ issuer.
3. In addition to the requirements laid down for processing of NOC applications in the
aforementioned circular, the merchant banker shall submit a certificate confirming that all
the SCSBs involved in ASBA process have unblocked ASBA accounts. SEBI shall
consider application as incomplete if the application is not accompanied by a confirmation
by merchant banker that all the accounts in ASBA have been ‘unblocked’.
4. Stock Exchanges are accordingly advised to bring the provisions of this Circular to the
notice of all Listed Companies respectively and also to disseminate the same on their
websites.
5. This Circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of investors in
securities and to promote the development of, and to regulate the securities market.
6. This Circular is available on SEBI website at www.sebi.gov.in under the category “Legal
/Circulars”.
Yours faithfully,
Medha Sonparote
General Manager
Investor Grievance Redressal Division
Office of Investor Assistance and Education
Tel No. 022 26449312
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