May 11, 2020

MCA has given relaxation in dispatch of notice by listed companies for rights issue opening upto 31st July, 2020

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SEBI vide its Circular dated 06th May, 2020 (“SEBI Circular”) has allowed listed entities to dispatch letter of offer for rights issue to its shareholders through electronic mode only due to ongoing situation arising out of COVID-19 pandemic. On the said line, MCA has also clarified that if a listed company complies with directions mentioned in the SEBI Circular for sending the letter of offer for rights issue opening upto July 31,2020,  to its shareholders, then it shall not be treated as violation of section 62(2) of the Companies Act, 2013, which provides for dispatching for letter of offer through registered post or speed post or courier , if dispatch through electronic mode is not possible.

Click here to view MCA Circular
Click here to view SEBI Circular

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