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Informist, Thursday, Nov. 21, 2024

 

MUMBAI – The Securities and Exchange Board of India Thursday said there was no requirement for stock exchange to issue a no-objection certificate for release of 1% of the public issue amount deposited by issuer companies prior to an amendment in the issue of capital and disclosure requirements regulations in May that abolished the compulsory deposit amount. SEBI issued this clarification in a circular Thursday and said it would be applicable with immediate effect.

 

In May, SEBI removed the issuer company requirement to deposit 1% of the issue size available for public subscription with the designated stock exchange. This move was intended to facilitate ease of doing business for the issuer companies. As a result of the May amendment, the regulator has now removed the need for a no-objection certificate for the release of 1% of the issue amount.

 

However, SEBI has asked stock exchanges to frame a joint standard operating procedure for the release of 1% security deposit that was deposited with stock exchanges by the issuer companies prior to the amendment to the regulation in May.  End

 

Reported by Akshay V. Johnson

Edited by Avishek Dutta

 

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