SEBI Master Circular on issuance of No Objection Certificate (NOC) for release of 1% of Issue Amount – 07th November, 2022

SEBI vide its Master Circular dated 07th November, 2022 has issued a Master Circular on issuance of No Objection Certificate (NOC) for release of 1% of Issue Amount before the opening of the subscription list, which is deposited with the designated stock exchange (DSE), 1% of the issue size available for subscription to the public. This amount of 1% shall be released to the issuer after obtaining the NOC from SEBI.

For the purpose of obtaining the NOC from SEBI, the issuer is required to submit an application on its letter head addressed to SEBI in the format specified in Annexure – A of this circular, after the expiry of 2 months from the date of listing on the latest stock exchange which permitted listing.

The application for NOC shall be filed by the Post Issue Lead Merchant Banker (PILMB), provided that all issue related complaints have been resolved by the PILMB/ issuer, with the concerned designated office of SEBI under which the registered office of the issuer falls, as specified in Annexure – B of this circular.

On the date of application for NOC, the bank guarantees, if any, which form part of the 1% deposit by issuer shall have a residual validity of minimum of 2 months.

The PILMB shall submit a certificate confirming that all the Self-Certified Syndicate Banks (SCSBs) involved in Application Supported by Blocked Amount (ASBA) have unblocked ASBA accounts. The application for NOC shall be considered incomplete by SEBI if the application for NOC is not accompanied by a confirmation by PILMB that all the accounts in ASBA have been ‘unblocked’.

SEBI shall issue the NOC after satisfying itself that the complaints arising from the issue received on SEBI Complaint Redress System (SCORES) against the issuer have been resolved to its satisfaction, the issuer has been submitting Action Taken Reports on the complaints in the format as specified in Annexure – C of this circular and the fees due to intermediaries associated with the issue process including ASBA Banks have been paid by the issuer.

All companies whose securities are listed on the stock exchanges and all registered merchant bankers are advised to comply with the aforesaid terms and conditions.

This circular is applicable to all Companies whose securities are listed on SEBI recognized Stock Exchanges (Through the Stock Exchanges), all recognized Stock Exchanges and all registered Merchant Bankers

Link to the Circular:
https://www.sebi.gov.in/legal/circulars/nov-2022/master-circular-on-issuance-of-no-objection-certificate-noc-for-release-of-1-of-issue-amount_64744.html

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like these

Skip to content