Notice for rights issue

MCA has issued a circular dated 11th May, 2020 wherein it has exempted listed companies from sending notices for rights issues by post/ courier where the rights issues are upto 31st July, 2020. This is in view of the Covid situation wherein all businesses have been under lockdown for more than 50 days now. So non despatch of notices to shareholders will not be construed as a violation under the Act. But listed companies have to comply with SEBI circular dated 6th May, 2020 on the subject. This circular of SEBI basically says that intimations should be sent by e-mail with reminders by SMS and advertisement by the company in all digital channels – internet, television, including crawlers, etc.  The notice should be posted on the website of the company, lead manager, registrar & stock exchanges. The rights issue during this period shall be only in ASBA method.

https://www.sebi.gov.in/legal/circulars/may-2020/relaxations-relating-to-procedural-matters-issues-and-listing_46652.html

Click to access Circular21_11052020.pdf

Leave a comment

Filed under Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s