One-time relaxation with respect to validity of SEBI Observations
Summary
SEBI grants a one-time relaxation extending the validity of SEBI Observations by six months for those expiring between March 1, 2020, and September 30, 2020. Issuers are permitted to adjust the fresh issue size by up to 50% without filing a fresh draft offer document, subject to specific compliance conditions. This circular is issued under Section 11(1) of the SEBI Act and applies to issues opening before December 31, 2020.
Text
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.
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.
This circular shall come into force with immediate effect.
This circular is issued in exercise of powers conferred by Section 11(1) of the Securities and Exchange Board of India Act, 1992.
Source: SecMarx — One-time relaxation with respect to validity of SEBI Observations. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.