Advertisement
Thursday, Jul 07, 2022
Outlook.com
Outlook.com

SEBI Relaxations For Rights Issue Compliance Extended Till March 2022

For the issue of capital and disclosure requirements norms, the application for rights is to be made only via the application supported by blocked amount (ASBA) facility. This applies to all rights issues opening up to March 31, 2022.

SEBI Relaxations For Rights Issue Compliance Extended Till March 2022
SEBI Relaxations For Rights Issue Compliance Extended Till March 2022
outlookindia.com
2021-10-01T20:47:53+05:30

Securities and Exchange Board of India (SEBI) extended relaxations to companies with regard to compliance with regulations and procedural norms pertaining to rights issues till March 31, 2022. For the issue of capital and disclosure requirements norms, the application for rights is to be made only via the application supported by blocked amount (ASBA) facility. This applies to all rights issues opening up to March 31, 2022. 

In order to ensure all eligible shareholders can apply to rights issue during the COVID-19 pandemic, SEBI in a May 2020 circular had said that the issuer along with the lead manager of the issue, the registrar and other recognised intermediaries institute an optional non-cash mode mechanism to accept the applications from the shareholders, with the condition that it is insured that no-third party payments are allowed in respect of any application. 

The issuer along with the lead manager, registrar and other recognised intermediaries are required to ensure compliance with this requirement.

"Issuer Company shall conduct a Vulnerability Test for optional mechanism (noncash mode only) provided to accept the applications in Rights Issue (facility provided by RTA), from an independent IT Auditor, and submit the report to Stock Exchange(s)," the circular stated. 

 

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

In happy times and sad, Habba Khatun’s sensuous songs make both young and old emotional. With the never-ending conflict bringing tragedies to every doorstep, Habba’s lyrics of separation amplify their mourning.

How Indian Laws Govern People’s Right To Love And Live

How Indian Laws Govern People’s Right To Love And Live

In India, only those relationships between a man and a woman are considered to be legitimate when there is a marriage between the two.

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Virat Kohli, 33, had recently stepped down as India's T20I captain and was subsequently removed as the ODI captain.

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

A Mahila Congress leader, who is the face of the ‘Ladki Hoon, Lad Sakti Hoon’ campaign, however, has accused the party of anti-women bias after she was denied a ticket.

Advertisement