With the hitting hard by second wave of Covid 19 virus in the current year 2021 and enforcement of lockdown measures by governments of most of states and situation becoming worse nationwide, the Capital Market Regulator, SEBI, vide circular dated April 22, 2021, the facility of applying in Rights Issue through alternative non-cash mode for accepting applications in Rights Issue, as set out in SEBI’s initial circular dated May 06, 2020, has been extended from Issues opening upto July 31, 2020 to September 30, 2021.
The responsibilities cast on the Lead Manager to the Issue, Registrar and Issuer remain the same as laid down in SEBI circular dated May 06, 2020 (point v of said circular).
The details of the relaxations so extended are as follows:
- The issuer, along with the lead manager, RTA and other intermediaries can institute an optional mechanism (non-cash mode only) to accept the applications of the shareholders in addition to the ASBA facility;
- Issuer along with Lead Manager to ensure that the mechanism(s) shall be transparent, robust and have adequate checks and balances;
- Creation of FAQs, online dedicated investor helpdesk, and helpline to guide investors in gaining familiarity with the application process and resolve difficulties;
- Responsibility of Lead Manager, Issuer and RTA for all investor complaints.
Additional responsibilities cast on Intermediaries:
- Refund for un-allotted/ partial allotted application shall be completed on or before T+1 day (T= Basis of allotment day);
- RTA to ensure that all data with respect to refund instructions is error-free to avoid any technical rejections;
- In case of any technical rejection, same shall be addressed promptly.