SEBI issues circular resolving issue of No Objection Certificate for release of 1% of Issue amount

The Securities and Exchange Board of India has issued a circular dated 05.07.2021 reducing the time-period for processing of NOC applications to 2 months from the existing period of 4 months after listing for submitting the application, as stated in Circular No. CIR/OIAE/1/2009 dated November 25, 2009, wherein 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 letterhead 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.

 

The same time-period of 4 months has been reduced to 2 months vide circular dated 05.07.2021 and is subject to the condition that all issue related complaints have been resolved by the merchant banker/ issuer. 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’.


*Tanvi Singh, Editorial Assistant has put this story together.

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