In
view of the impact of the COVID-19 pandemic, based on representations from
various industry bodies, SEBI has decided to grant the following one time
relaxations:
Public
issue/Rights issue
In
terms of Regulation 44(1), 85 and 140 of the Securities and Exchange Board of
India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR
Regulations), a public issue/rights issue may be opened within twelve months
from the date of issuance of observations by SEBI.
The validity of the SEBI
Observations where the same have expired/ will expire between March 1, 2020 and
September 30, 2020 has been extended by 6 months, from the date of expiry of
such observation, subject to an undertaking from lead manager of the issue
confirming compliance with Schedule XVI of the ICDR Regulations while submitting
the updated offer document to the Board.
In
terms of Schedule XVI (1) (f)(i) of the ICDR Regulations, 2018 any increase or
decrease in estimated fresh issue size by more than twenty percent of the
estimated fresh issue size shall
require
fresh filing of the draft offer document along with fees.
Increase or decrease the
fresh issue size
An issuer shall be
permitted to increase or decrease the fresh issue size by up to 50% of the
estimated issue size without requiring to file fresh draft offer document with
the Board subject to following conditions:
(a) there has been no change in the
objects of the issue
(b) the lead manager undertakes
that the draft offer document is in compliance with provisions of Regulation
7(1)(e)
(c)
the lead manager shall ensure that all appropriate changes are made to the
relevant section of DRHP and an addendum, in this regard, shall be made public.
The above relaxation on
change in fresh issue size shall be applicable for issues (IPO/ Rights Issues/
FPO) opening before December 31, 2020.
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