Relaxation in regulation 24(I)(F) of the SEBI (Buy-Back of Securities) regulations, 2018 due to the COVID-19 pandemic

by | Apr 28, 2020

Under India’s securities law, public issues and rights issues have to be opened within 12 months of receipt of the approval from the Securities and Exchange Board of India (SEBI). On April 23, 2020, the SEBI extended the validity period of approvals which may have expired, or are due to expire, between March 1, 2020 and September 30, 2020, by 6 months. The SEBI has also relaxed the requirement of filing a new draft offer document in case of change in the offer size from the existing limit of 20% of the estimated offer size to 50%. Several other public issue norms have been relaxed to help Indian companies plan public offers in the near future.

Listed companies are restricted from raising capital for a year after the completion of a buy-back. In a bid to facilitate listed companies to raise funds, the Securities and Exchange Board of India has relaxed this time period to 6 months. This exemption will be valid until December 31, 2020.

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