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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

COVID-19 - Relaxations relating to procedural matters of Rights Issue

06-May-2020 | SEBI/HO/CFD/DIL2/CIR/P/2020/78

SEBI has granted one time relaxations from certain regulations of SEBI (ICDR) Regulations, 2018 pertaining to Rights Issue opening upto July 31, 2020: (1) Regulation 77(2) - Service of the abridged letter of offer, application form and other issue material to shareholders may be undertaken by electronic transmission.The issuer company along with lead manager(s) shall undertake all adequate steps to reach out its shareholders through other means such as ordinary post or SMS or audio-visual advertisement on television or digital advertisement, etc. (2) Regulation 84(1) - The issue related advertisement as mandated by Regulation 84(1), shall contain additional details as regards the manner in which the shareholders who have not been served notice electronically may apply. (3) In case the physical shareholders who have not been able to open a demat account or are unable to communicate their demat details, in terms of clause 1.3.4 of SEBI circular dated January 22, 2020, to the issuer/ registrar for credit of REs within specified time, such physical shareholders may be allowed to submit their application subject to certain conditions. (4) Regulation 76 - the issuer shall along with lead manager(s) to the issue, the registrar, and other recognized intermediaries institute an optional mechanism (non- cash mode only) to accept the applications of the shareholders subject to ensuring that no third party payments shall be allowed in respect of any application. (5) Authentication/ certification/ Undertaking(s) in respect of offer documents, may be done using digital signature certifications.The issuer along with lead manager(s) shall also provide procedure for inspection of material documents electronically.

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