Relaxations relating to procedural matters – Issues and Listing
Summary
SEBI grants one-time relaxations for rights issues opening until July 31, 2020, due to the COVID-19 pandemic. Issuers are permitted to use electronic transmission for offer materials and alternative mechanisms for physical shareholders to apply. Relaxations also extend to digital signatures for offer documents filed by the same deadline.
Text
Service of abridged letter of offer and application forms may be undertaken by electronic transmission; failure to adhere to registered post modes will not be treated as non-compliance.
Issue advertisements must contain details on how unserved shareholders may apply and may be published in additional newspapers and via television, radio, or internet crawlers.
Physical shareholders unable to provide demat details may apply subject to conditions: no renunciation of rights entitlements and shares received only in demat mode.
Issuers shall institute an optional non-cash mechanism to accept applications, ensuring no third-party payments are allowed.
Mechanisms must be transparent, robust, and include FAQs, helpdesks, and helplines; issuers remain responsible for investor complaints.
Authentication, certification, or undertakings in respect of offer documents may be done using digital signature certifications.
The issuer along with lead manager(s) shall provide a procedure for inspection of material documents electronically.
Source: SecMarx — Relaxations relating to procedural matters – Issues and Listing. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.