**Summary:**
SEBI Circular SEBI/HO/CFD/DIL1/CIR/P/2020/188, dated September 29, 2020, addresses relaxations regarding the validity of SEBI observations and revisions in issue size for market participants. This circular extends certain relaxations previously granted in response to COVID-19 related challenges. Specifically, the relaxation allowing for revisions in issue size up to 50% (as outlined in Sr. No. 1ii of SEBI Circular no. SEBI/HO/CFD/DIL1/CIR/P/2020/66 dated April 21, 2020) is extended until March 31, 2021. Additionally, the validity of SEBI observations expiring between October 1, 2020, and March 31, 2021, is extended until March 31, 2021, contingent upon the lead manager's undertaking to ensure compliance with Schedule XVI of the ICDR Regulations, 2018, during the updated offer document submission. This circular is effective from October 1, 2020, and is issued under the authority of Section 11(1) read with Section 11A of the Securities and Exchange Board of India Act, 1992, and Regulations 299 and 300 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The purpose is to protect investor interests and promote the development and regulation of the securities market. Further information can be found on the SEBI website (www.sebi.gov.in) under Legal Framework/Circulars. Contact Yogita Jadhav, Deputy General Manager (yogitaj@sebi.gov.in), for inquiries.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): Regulatory body for the securities market in India.
SEBI Circular no. SEBIHOCFDDIL1CIRP202066: SEBI circular dated April 21, 2020, providing relaxations related to SEBI observations and issue size.
Nationwide Stock Exchanges: Refers to all stock exchanges operating across India.
Merchant Bankers: Financial institutions registered with SEBI that manage public offerings.
ICDR Regulations, 2018: Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018
Securities and Exchange Board of India Act, 1992: The law that established SEBI and defines its powers and functions.
Yogita Jadhav: Deputy General Manager at SEBI, signatory of the circular.
Covid 19: Refers to the Covid-19 pandemic which has caused prevailing conditions.
CIRCULAR
SEBI/HO/CFD/DIL1/CIR/P/2020/188 September 29, 2020
To
All Registered Merchant Bankers
All the Nationwide Stock Exchanges
All Market Participants
Dear Sir/Madam,
Sub: Relaxation with respect to Validity of SEBI Observations and Revision in issue size
1. SEBI vide circular no. SEBI/HO/CFD/DIL1/CIR/P/2020/66 dated April 21, 2020 had given
certain relaxations with respect to validity of SEBI Observations and filing of fresh offer
document in case of increase or decrease of issue size beyond a particular threshold.
2. There have been representations that in view of the prevailing conditions due to Covid
19, the relaxations granted in April 2020 be continued for some more time.
3. After due consideration, it has been decided that the relaxation mentioned at Sr. No. 1(ii)
of SEBI Circular no. SEBI/HO/CFD/DIL1/CIR/P/2020/66 dated April 21, 2020 for revision in
issue size upto 50% shall continue till March 31, 2021.
4. Secondly, the validity of the SEBI observations expiring between October 1, 2020 and
March 31, 2021 shall be extended upto March 31, 2021, subject to an undertaking from
lead manager to the issue confirming compliance with Schedule XVI of the ICDR
Regulations, 2018 while submitting the updated offer document to the Board.
5. This circular shall come into force with effect from October 01, 2020.
6. This circular is issued in exercise of powers conferred by Section 11(1) read with Section
11A of the Securities and Exchange Board of India Act, 1992 read with Regulations 299
and 300 of the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018, to protect the interests of investors in securities and to
promote the development of, and to regulate the securities market.
Page 1 of 27. A copy of this circular is available on SEBI website at www.sebi.gov.in under the categories
“Legal Framework/Circulars”.
Yours faithfully,
Yogita Jadhav
Deputy General Manager
yogitag@sebi.gov.in
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