MCA vide circular dated 11th May, 2020 clarifies that inability to dispatch the notice by Listed Companies to their shareholders through registered post or speed post or courier would not be viewed as violation of section 62(2) of the Act provided that they comply with the Circular issued by SEBI on 6th May, 2020.
Further, SEBI vide circular SEBI/HO/CFD/DIL2/CIR/P/2020/78 dated 6th May, 2020 has provided one time relaxations from strict enforcement of certain regulations of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 pertaining to Rights Issue opening upto July 31, 2020.
Some of the key points of relaxations provided are as follows:
- Abridged letter of offer, application form and other issue material to shareholders may be served by electronic transmission as provided under Regulation 77(2) of the ICDR Regulation and failure to adhere to modes of dispatch through registered post or speed post or courier services will not be treated as non-compliance.
- Issuer company shall take adequate steps to reach out its shareholders through means such as ordinary post or SMS or audio-visual advertisement on television or digital advertisement, etc
- The issue related advertisement shall contain additional details specifying the manner in which the shareholders who have not been served notice may apply for the same electronically
- An application for a rights issue shall be made only through ASBA facility(Applications Supported by Blocked Amount) as provided under Regulation 76 of the ICDR Regulations
The complete content of MCA Circular and SEBI circular along with other relaxations is attached herewith: