Sebi cuts time period for filing application to obtain NOC

Sebi on Monday reduced the time period to two months, from four months at present, for companies to submit an application with the markets regulator for obtaining a ‘No Objection Certificate’ for release of 1 per cent of issue amount.

Under rules, the issuer company deposits 1 per cent of the issue amount of the securities offered to the public and/or to the holders of the existing securities of the company, as the case may be, with the designated stock exchange.

This amount is released to issuer companies after obtaining a No Objection Certificate (NOC) from Sebi.

With regard to release of the 1 per cent issue amount, the issuer company at present is required to submit an application on its letter head addressed to Sebi in a specified format, after lapse of 4 months from listing on the exchange which was the last to permit listing. “It has been decided to reduce the time period after listing for submitting the application to 2 months from the existing period of 4 months,” Sebi said in a circular.

This is subject to the condition that all issue related complaints have been resolved by the merchant banker or issuer, it added.

In addition, the merchant banker will have to submit a certificate confirming that all the Self Certified Syndicate Banks (SCSBS) involved in ASBA (Applications Supported by Blocked Amount) process have unblocked the ASBA accounts.

The regulator will consider application as incomplete if the application is not accompanied by a confirmation by merchant banker that all the accounts in ASBA have been ‘unblocked’.

The stock exchanges have been asked to bring the provisions of the new framework to the notice of all listed companies and also to disseminate the same on their websites.