**Summary:**
SEBI Circular SEBI/HOCFDD/IL2/CIR/P/2021/552, dated April 22, 2021, further extends relaxations concerning procedural matters related to issues and listing, specifically concerning Rights Issues. This circular extends the relaxation mentioned in point iv of SEBI Circular No. SEBI/HOCFDD/IL2/CIR/P/2020/78, dated May 6, 2020, making it applicable to Rights Issues opening up to September 30, 2021. This extension is contingent upon the issuer and Lead Managers complying with point v of the May 6, 2020 circular. The initial relaxations were introduced to ease the burden on investors during the COVID-19 pandemic. Additionally, the circular outlines requirements for refunds of unallotted/partially allotted applications, mandating completion by T+1 day (where T is the Basis of Allotment day). Registrars are instructed to ensure the accuracy of refund instructions and promptly address any technical rejections. This circular is issued under the authority of Section 11(1) and 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. The circular aims 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 the categories Legal Framework/Circulars. For further information, contact Rajesh K Dangeti, Chief General Manager, Corporation Finance Department, at rajeshkd@sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): Regulatory body for the securities market in India, responsible for protecting investors' interests.
SEBI Issue of Capital and Disclosure Requirements Regulations, 2018: Regulations pertaining to the issuance of capital and disclosure requirements by companies in India.
Rights Issue: An offering of shares to existing shareholders in proportion to their current holdings.
Registered Merchant Bankers: Financial institutions registered with SEBI that manage public offerings and other capital market activities.
Recognized Stock Exchanges: Stock exchanges recognized by SEBI for trading securities.
Registered Registrars to an Issue: Entities registered with SEBI that manage the administrative aspects of securities offerings.
Self Certified Syndicate Banks: Banks authorized to handle applications and refunds in public offerings.
Rajesh K Dangeti: Chief General Manager, Corporation Finance Department at SEBI, the signatory of the circular.
CIRCULAR
SEBI/HO/CFD/DIL2/CIR/P/2021/552 April 22, 2021
To
All Registered Merchant Bankers
All Recognized Stock Exchanges
All Registered Registrars to an Issue
All Self Certified Syndicate Banks
All listed entities
All entities who propose to list the specified securities
Dear Sir/Madam,
Sub: Relaxations relating to procedural matters –Issues and Listing.
1. SEBI vide Circular no. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 6, 2020, granted
one time relaxations from strict enforcement of certain regulations of SEBI (Issue of Capital
and Disclosure Requirements) Regulations, 2018, pertaining to Rights Issue opening upto
July 31, 2020.
2. Based on the representations received from the market participants, the validity of
these relaxations was further extended for Rights Issues opening up to December 31,
2020, vide SEBI Circular No. SEBI/HO/CFD/DIL1/CIR/P/2020/136 dated July 24, 2020.
3. The relaxation mentioned in point (iv) of the SEBI Circular No.
SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 6, 2020, was further extended for Rights
Issues opening up to March 31, 2021, vide SEBI Circular No.
SEBI/HO/CFD/DIL1/CIR/P/2021/13 dated January 19, 2021.
4. To ease and facilitate investors, the relaxation mentioned in point (iv) of the SEBI Circular
No. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 6, 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 dated May 06, 2020.
5. In respect to mechanism and compliance requirements at point (iv) and (v) of the SEBI
Circular No. SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated May 6, 2020, the issuer along with
Lead Manager(s), Registrar, and other recognized intermediaries (as incorporated in the
mechanism) shall also ensure the following:
a. Refund for un-allotted / partial allotted application shall be completed on or before
T+1 day (T: Basis of allotment day).
b. Registrar to the issue, shall ensure that all data with respect to refund instructions
is error free to avoid any technical rejections. Further, in case of any technical
rejection of refund instruction, same shall be addressed promptly.
Page 1 of 26. 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.
7. A copy of this circular is available on SEBI website at www.sebi.gov.in under the categories
“Legal Framework/Circulars”.
Yours faithfully,
Rajesh K Dangeti
Chief General Manager
Corporation Finance Department
rajeshkd@sebi.gov.in
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