Sebi issues master circular on NOC related to public issue

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Markets regulator Sebi has issued a master circular on the issuance of a No Objection Certificate (NOC) with respect to the amount deposited by an issuer before the opening of an issue.

An issuer, before the opening of the subscription list, is mandated to deposit with the designated stock exchange an amount that is equivalent to 1 percent of the issue size available for subscription to the public. This amount of 1 percent would be released to the issuer after obtaining the NOC from the Securities and Exchange Board of India (Sebi).

For the purpose of obtaining the NOC, the issuer is required to submit an application on its letterhead in a specified format after the expiry of two months from the date of listing on the latest stock exchange which permitted listing.

"The application for NOC shall be filed by the Post Issue Lead Merchant Banker (PILMB), provided that all issue-related complaints have been resolved by the PILMB/ issuer…," the circular said.

The circular rescinds three circulars issued previously on the subject.