Mar 31, 2022

Clarification in Respect of Submission of NOC from Lenders by Listed Entities

SEBI, by way of Circulars dated November 16, 2021, and November 18, 2021, amended the conditions applicable to schemes of arrangement involving listed entities (‘Framework’) to inter alia provide for submission of a ‘No Objection Certificate’ (‘NOC’) from lenders of the listed entity to the stock exchange. Our write-up on these Circulars can be accessed here. SEBI, by way of Circulars dated January 3, 2022, and February 1, 2022, and applicable to Schemes filed with stock exchanges after November 16, 2021, has further amended the Framework as follows:

  1. It has been clarified that the NOC is required to be submitted before the issuance of the final no-objection letter from the stock exchange; and
  2. The NOC is required from not less than 75% of the secured creditors in value.




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