Capital Markets regulator Securities and Exchange Board of India ( Sebi) on Tuesday extended relaxations for companies with regards to compliance with procedural norms pertaining to rights issues opening till March 31 amid the ongoing coronavirus pandemic. Earlier, this relaxation was given for rights issues opening till July 31, 2020, which was further extended till December 31, 2020.
Based on the representations received from the market participants, the validity of relaxations is further extended and shall be applicable for rights issues opening up to March 31, 2021, the Sebi said in a circular.
Under the relaxations, the abridged letter of offer, application form and other issues material to shareholders can be undertaken by electronic transmission as already provided under the ICDR norms. Failure to adhere to modes of dispatch through registered post or speed post or courier services due to prevailing coronavirus related conditions will not be treated as non-compliance.
However, the issuers will have to publish the letter of offer, abridged letter of offer and application forms on the websites of the company, registrar, stock exchanges, and the lead managers to the rights issue, the regulator said. Further, the issuer company, along with the lead manager, needs to undertake all adequate steps to reach out to its shareholders through other means such as ordinary post, SMS, and audiovisual advertisement on television or the internet.