The Securities and Exchange Board of India (SEBI), on November 21, 2024, issued a notification related to Withdrawal of Master Circular on issuance of No Objection Certificate (NOC) for release of 1% of Issue Amount.
To streamline processes and enhance ease of doing business, SEBI has removed the requirement for issuer companies to deposit 1% of the issue size with designated stock exchanges under Regulation 38(1) of the SEBI (ICDR) Regulations, 2018. This change follows the amendment to the ICDR Regulations via a notification on May 17, 2024.
Consequently, the Master Circular dated November 7, 2022, concerning the issuance of No Objection Certificates (NOCs) for releasing the 1% deposit, stands withdrawn. Stock exchanges will implement a joint standard operating procedure (SOP) to release deposits submitted before the amendment.
The circular takes effect immediately, and stock exchanges must update their rules, disseminate the information widely, and ensure compliance to protect investors and promote market efficiency.
[Notification No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2024/0161]
