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Withdrawal of Master Circular on issuance of NOC for release of 1% of Issue Amount

Circular No.: SEBI/HO/CFD/CFD-PoD-2/P/CIR/2024/0161

Circular date: November 21, 2024 

Relevant Regulations:  SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations) 
 
Relevant Rule/Reg. No:  Regulation 38 (1) 
 
On November 21, 2024 SEBI released a Circular for Withdrawal of Master Circular on issuance of NOC for release of 1% of Issue Amount, the key points of which are enlisted hereinbelow:
1. To ease the process for Issuer companies, the requirement for them to deposit 1% of the issue size available for public subscription with the designated stock exchange, as stipulated under regulation 38(1) of  the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations), has been removed.  

2.  Following the amendment of the ICDR Regulations through the gazette notification dated May 17, 2024, the Master Circular no. SEBI/HO/OIAE/IGRD/P/CIR/2022/0151, dated November 7, 2022, regarding the issuance of a No Objection Certificate for the release of 1% of the Issue Amount has been withdrawn.

3.  However, Stock Exchanges are required to establish a joint standard operating procedure (SoP) for the release of 1% security deposits that were made with stock exchanges by issuers prior to the aforementioned amendments to the ICDR Regulations, 2018.
 
4.  This circular will take effect immediately
5.  Stock Exchanges are therefore advised to: 
a. Notify all listed companies about the provisions of this circular and ensure it is disseminated on their respective websites. 
b. Make any necessary amendments to their relevant bye-laws, rules, and regulations to implement the terms of this circular  
 

Notification Link: https://www.sebi.gov.in/legal/circulars/nov-2024/withdrawal-of-master-circular-on-issuance-of-no-objection-certificate-noc-for-release-of-1-of-issue-amount_88655.html

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