In view of the difficulties faced due to COVID-19 pandemic and the lockdown measures, SEBI has decided to grant one-time relaxation from the strict enforcement of the SEBI (ICDR) Regulations, 2018 pertaining to Right issues opening up to July 31, 2020, as follows:
1. The abridged letter of offer, application form and other issue material may be served electronically to all existing shareholders.
2. The issue related advertisement shall contain additional details of the manner in which the shareholders may apply, in case notice has not been served electronically to them.
3. In addition to the ASBA facility, the issuer shall provide an optional mechanism (non- cash mode only) to accept the applications subject to ensuring that no third-party payments shall be allowed.
4. Physical shareholders who were required to provide their Demat account details to the issuer in terms of for the credit of rights entitlements but failed to open or provide the details of Demat accounts in terms of SEBI circular dated January 22, 2020, such physical shareholders may be allowed to submit their application subject to specified conditions.
Effective date: May 06, 2020
Source: SEBI Circular dated 06.05.2020
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