SEBI has received a number of suggestions for relaxation of conditions with respect to raising of funds from the securities market.Considering the developments relating to the COVID 19 pandemic , SEBI has provided Relaxation in Buy Back Regulations 24(i)(f)of the SEBI (Buy-back of Securities) due to the COVID 19 pandemic.
1.Currently, regulation 24(i)(f) of SEBI (Buy-back of Securities) Regulations, 2018 (“Buy-back Regulations”) provides a restriction that the companies shall not raise further capital for a period of one year from the expiry of buyback period, except in discharge of their subsisting obligations.It has been represented that the said period of one year may be reduced to six months, which would be in line with section 68(8) of the Companies Act, 2013.
2.To enable relatively quicker access to capital, it has been decided to temporarily relaxthe period of restriction provided in Regulation 24(i)(f) of the Buy-back Regulations. Accordingly the words “one year” shall be read as “six months” in the said regulation.
3.This relaxation will be applicable till December 31, 2020.
4.This circular shall come into force with immediate effect. The stock exchanges are advised to bring the provisions of this circular to the notice of all the stakeholders including the listed entities and also disseminate on their websites.
5.The circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992.
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