SEBI casts more obligations on Issuers, introduces new circular for Streamlining the Process of Public Issue of Equity Shares and convertibles

SEBI casts more obligations on Issuers, introduces new circular for Streamlining the Process of Public Issue of Equity Shares and convertibles

November 5, 2018 CORP, Industries, states 0

Securities Exchange Board of India (SEBI) issues a circular dated 1st November, 2018 regarding Streamlining the Process of Public Issue of Equity Shares and convertibles.

Few important highlights from the perspective of issuer is mentioned below.

  • Issuers are casted with an obligation to appoint one Self Certified Syndicate Bank (SCSB) for acting a conduit between the Stock Exchange and the National Payments Corporation of India (NCPI) in order to push the mandate collect requests and payment instructions of retail investors.
  • Issuer’s appointed Sponsor Bank can also be the same bank with whom the public issue account has been opened by the Issuer.
  • Issuer, merchant banker and registrar to submit all relevant documents to stock exchanges for listing permission.
  • Corporate action can be initiated by the registrar or issuer to carry out lock-in for pre-issue capital held in depository.
  • Corporate action to be initiated by the registrar or issuer with respect to credit share of successful allottees.
  • Issuer and registrars to file allotment details with the designated stock exchanges and shall comply with all formalities regarding the same. Further the issuer or registrar to file confirmation demat credit, lock-in and issuance instruction with the stock exchanges.
  • Issuer to make listing application before the stock exchange for listing and trading permission.
  • Allotment advertisement to be published by the issuer/merchant banker/registrar before commencement of trading, the date of commencement of trading shall display prominently in such advertisement to be published in the newspapers where such advertisement regarding opening or closing regarding issue have appeared.

Source: Securities Exchange Board of India

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