Several representations have been received in the Ministry for providing clarification on the mode of issue of notice referred to in section 62(1)(a)(i) of the companies act read with section 62(2) of the Act for rights issue by listed companies in view of the difficulties faced by companies in sending notices through postal or courier services on account of the threat posed by Covid 19.The issues raised in the said representations have been examined. The circular issued by SEBI on 6th May 2020 has also been considered.
It is hereby clarified that for rights issues opening upto 31st July 2020 in case of listed companies which comply with the SEBI circular dated 6th May 2020 inability to dispatch the notices referred in para 1 of this circular to their shareholders through registered post or speed post or courier would not be viewed as violation of section 62(2) of the Act.
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