Notification / Circular No.: HO/49/11/11(123)2026-CFD-RAC-DIL2/I/8760/2026 dated April 07, 2026
Applicable Act / Rule: Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
Under the existing regulatory framework, SEBI observation letters issued for public issues are valid for a specified period (generally 12 months or 18 months, as applicable), within which issuers must open the issue. Due to prevailing market volatility and geopolitical tensions, several issuers were unable to proceed with their public issue timelines. This led to risks of expiry of observation letters and duplication of regulatory processes.
SEBI has granted a one-time relaxation extending the validity of observation letters as follows:
This relaxation has been provided considering difficulties faced by issuers in accessing capital markets and mobilising resources due to uncertain market conditions and subdued investor participation.
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