1. Considering the developments relating to the COVID 19 pandemic, SEBI has received a number of suggestions for relaxation of conditions with respect to raising of funds from the securities market.
2. Currently, regulation 24(i)(f) of SEBI (Buy-back of Securities) Regulations, 2018 (“Buyback Regulations”) provides a restriction that the companies shall not raise further capital for a period of one year from the expiry of buyback period, except in discharge of their subsisting obligations. It has been represented that the said period of one year may be reduced to six months, which would be in line with section 68(8) of the Companies Act, 2013.
3. To enable relatively quicker access to capital, it has been decided to temporarily relax the period of restriction provided in Regulation 24(i)(f) of the Buy-back Regulations. Accordingly the words “one year” shall be read as “six months” in the said regulation.
4. This relaxation will be applicable till December 31, 2020.
5. This circular shall come into force with immediate effect.
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