Withdrawal of Master Circular on issuance of No Objection Certificate (NOC) for release of 1% of Issue Amount
Summary
The Securities and Exchange Board of India (SEBI) has withdrawn the requirement for issuer companies to deposit 1% of the issue size with designated stock exchanges. Consequently, the Master Circular regarding the issuance of No Objection Certificates for releasing this amount is also withdrawn. Stock Exchanges are directed to frame a joint Standard Operating Procedure for handling security deposits already made prior to these amendments.
Text
the requirement to deposit 1% of the issue size available for subscription to the public with the designated stock exchange by the Issuer company under regulation 38 (1) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations) has been dispensed with.
the Master Circular no. SEBI/HO/OIAE/IGRD/P/CIR/2022/0151 dated November 07, 2022 on Issuance of No Objection Certificate for release of 1% of Issue Amount stands withdrawn.
the Stock Exchanges shall frame a joint standard operating procedure (SoP) for release of 1% security deposit that were deposited with stock exchanges by the issuer prior to abovementioned amendments in ICDR Regulations, 2018.
The circular shall be applicable with immediate effect.
bring the provisions of this circular to the notice of all the companies whose securities are listed in the exchange and also to disseminate the same on the website of the stock exchange.
make amendments to the relevant bye-laws, rules and regulations for the implementation of the terms of this circular, if necessary.
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 — Withdrawal of Master Circular on issuance of No Objection Certificate (NOC) for release of 1% of Issue Amount. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.