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Joint Standard Operating Procedure (SOP) for release of 1% Security Deposit by BSE/NSE

BSE Notice No: 20241206-6 dated  06 Dec 2024

NSE Notice No.: Download Ref No: NSE/CML/65467;  Circular Ref. No: 2328 /2024 dated  December 06, 2024
 

Relevant Acts/Regulations: SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations)

 

Pursuant to SEBI circular dated November 21,2024 and consequential withdrawal of SEBI circular no. SEBI/HO/OIAE/GRD/P/CIR/2022/0151 dated November 07, 2022 , Joint SOP for release of 1% Security Deposit kept by the company with the Designated Stock Exchange (DSE) prior to May 18, 2024 shall be as under:

The Company shall submit application for the release of 1 % security deposit with DSE along with following documents:
 
 ➢ Certificate from the merchant banker confirming that all the SCSBs involved in ASBA process have confirmed that they have unblocked the funds for the respective investors as applicable and nothing is pending as on date. Further, for issues prior to ASBA mechanism confirmation that no shares/funds are lying with the company pursuant to the issue.
➢ Certificate on company letterhead confirming that the Company has fully paid all dues of lead merchant bankers, registrars, underwriting commission, brokerage commission and all other intermediaries to the issue and there is no amount pending/outstanding by the Company. Further, confirm that all the shares have been credited to the respective shareholders pursuant to the issue and no shares are lying in the escrow account.
➢ The Statutory Auditor certificate confirmation w.r.t fund raising of the Company that the Company has paid all the dues of lead merchant bankers, registrars, underwriting commission, brokerage commission and all other intermediaries to the issue and there is no amount pending/outstanding by the Company. 
➢ Copy of cancelled cheque of the Issuer Company. 
 
➢ Confirmation from Company that there is no investor Complaint pending pursuant to the issue for which 1% security deposit was taken by the DSE. 

On submission of all the above documents in order, Exchange will check investor grievance status with the Exchange(s) where the Company is listed. Post receipt of clearance from the Investor Services team stating that there are no complaints pending against the listed company w.r.t. the issue against which security deposit was maintained, Exchange shall release 1% security deposit to the Company.  

Link for accessing Notice by BSE: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20241206-6

Link for accessing Notice by NSE: https://nsearchives.nseindia.com/content/circulars/CML65467.pdf

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