MANU/SDIP/0006/2020

Ministry : Securities and Exchange Board of India

Department/Board : Corporation Finance Department

Circular No. : SEBI/HO/CFD/CIR/CFD/DIL/67/2020

Date : 21.04.2020

To

All Recognized Stock Exchanges
All Registered Merchant Bankers

Dear Sir/Madam,

Relaxations from certain provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 in respect of Rights Issue

1. In the wake of developments relating to the Covid-19 pandemic, a number of suggestions have been received by SEBI from industry bodies and market participants for easing of conditions relating to raising of funds from the securities market.

2. In this context, it has been decided to introduce temporary relaxations in the provisions related to Rights Issues as contained in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations) as follows:

A. Relaxations with respect to the eligibility conditions related to Fast Track Rights Issues:

Unless otherwise specified, nothing contained in sub-regulations (1), (2), (4) and (5) of the Regulation 71 shall apply if the issuer satisfies the conditions mentioned under Regulation 99 of ICDR Regulations for making a rights issue through the fast track route.

Certain temporary relaxations with respect to Regulation 99 of ICDR Regulations are extended as follows:

(i) In regulation 99(a) the words 'three years' shall be read as 'eighteen months'

(ii) In regulation 99(c) the words 'two hundred and fifty crores' shall be read as 'one hundred crores'

(iii) In regulation 99(f) and its proviso the words 'three years' shall be read as 'eighteen months'