Week ending 26.01.2021

(GOVERNMENT NOTIFICATIONS, CIRCULARS & ANNOUNCEMENTS)

SEBI Extends Relaxation for Submission of Rights Issue Application (19.01.2021)

On 06.01.2020, the Securities & Exchange Board of India (SEBI) issued a Circular granting a one-time relaxation from the enforcement of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 due to the ongoing pandemic with respect to Rights Issue. This relaxation was further extended till 31.12.2020 based on various representations received. One of the relaxations mentioned in the Circular pertained to submission of application with regards to rights issue which could be made to the registrar or/and other recognised body instead of the stipulated Application Supported by Blocked Amount (ASBA) facility.

In the present Circular issued on 19.01.2020, this particular relaxation regarding submission of application has been further extended till 31.03.2021.

Please find link to Circular dated 06.05.2020 here

Please find link to Circular dated 19.01.2021 here

SEBI (Intermediaries) (Amendment) Regulations, 2021 (21.01.2021)

On 21.01.2021, the Securities & Exchange Board of India (SEBI) notified the SEBI (Intermediaries) (Amendment) Regulations, 2021. Regulation 25 which lays down the provisions for holding of enquiry has now been substituted. The amended provision now states that the designated authority shall issue a notice to a person against whom enquiry is to be initiated. The notice must direct such person to show cause as to why action should not be initiated against them.

Regulation 26 which specifies the recommendation of action to be taken has also been substituted to read that the designated authority, after considering all material on record and reply, shall recommend the following measures, amongst others:

• Disposing the proceedings without any adverse action
• Cancellation of the certificate of registration
• Suspension of the certificate for a specified period
• Issuance of a regulatory censure to the notice

Regulation 27 now states that after considering all the material on record with the relevant facts and circumstances, the designated member shall pass an appropriate order within 120 days from the date of receipt of submission. Regulation 28 which laid down the procedure for action on receipt of the recommendation has now been omitted.

Please find link to Notification here