Relaxation of Validity of SEBI Observations and Revision in Issue Size

SEBI had, by its circular dated April 21, 2020, given certain relaxations with respect to validity of SEBI observations and filing of fresh offer document in case of increase or decrease of issue size beyond a particular threshold, key details of which are covered in the June 2020 edition of Inter alia. Now, SEBI has (by a circular dated September 29, 2020) extended the validity of such relaxations, such that the validity of the SEBI observations expiring between October 1, 2020 and March 31, 2021 has been extended up to March 31, 2021. Further, for public issues or rights issues opening till March 31, 2021, all issuers whose offer documents are pending receipt of SEBI observations, have been permitted to increase or decrease the fresh issue size by up to 50% of the estimated issue size, without requiring to file fresh draft offer document with SEBI.

Published In:Inter Alia - Quarterly Edition - September 2020 [ English
Date: September 30, 2020