Issue of No Objection Certificate for release of 1% of Issue amount
Summary
SEBI reduces the mandatory waiting period for submitting an application for a No Objection Certificate (NOC) from four months to two months post-listing. The issuer must ensure all issue-related complaints are resolved by the merchant banker before applying. Additionally, the merchant banker must provide a certificate confirming that all ASBA accounts have been unblocked.
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It has been decided to reduce the time period after listing for submitting the application to 2 months from the existing period of 4 months as stated in above mentioned circular. The same 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’.
Stock Exchanges are accordingly advised to bring the provisions of this Circular to the notice of all Listed Companies respectively and also to disseminate the same on their websites.
This Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Issue of No Objection Certificate for release of 1% of Issue amount. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.