The Securities and Exchange Board of India (“SEBI”) by way of its earlier circular dated April 21, 2020 (“April Circular”), had granted certain relaxations with respect to filing of fresh offer document in case of increase or decrease of issue size beyond a particular threshold and validity of SEBI’s observations.  

In view of the representations received on account of prevailing conditions due to Covid-19, SEBI vide its circular dated September 29, 2020 (“Circular”) has decided to extend and grant the following relaxations: 

1. Under the April Circular, an issuer was permitted to increase or decrease the fresh issue size by up to 50% (fifty percent) of the estimated issue size without requiring to file fresh draft offer document with SEBI, for issues (IPO/ Rights Issues/ FPO) opening before December 31, 2020. The reference timeline has now been extended for issues opening before March 31, 2021. 

2. Further, validity of SEBI’s observations expiring between October 1, 2020 and March 31, 2021 have now been extended up to March 31, 2021, subject to an undertaking coming from the lead manager to the issue, confirming compliance with Schedule XVI of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 while submitting the updated offer document to SEBI. 

Please find a copy of the April Circular here and a copy of the Circular here.

This update has been contributed by Aastha (Partner) and Swaraj Narula (Associate).