Sebi extends regulatory approval validity for IPO, rights issue up to March 31

Mumbai: The Securities and Exchange Board of India (Sebi) on Tuesday extended the validity of regulatory approval for launching initial public offering and rights issues that would expire between October and March up to March 31.

“The validity of the Sebi observations expiring between October 1, 2020 and March 31, 2021 shall be extended up to March 31, 2021, subject to an undertaking from lead manager to the issue confirming compliance with Schedule XVI of the ICDR Regulations, 2018 while submitting the updated offer document to the Board,” Sebi said in a circular.

The markets regulator also extended the relaxation on revision of issue price for an offer by up to 50 per cent to March 31.


On April 21, the regulator had said that an issuer, whose offer document for IPO, follow on public offer and rights issue is pending receipt of its observation, will be permitted to increase or decrease the fresh issue size by up to 50 per cent of the estimated issue size without requiring to file fresh draft offer document with the Sebi.

The relaxations were granted in light of the new coronavirus pandemic.

Prior to the April circular, an IPO or rights issue was mandated to be opened within twelve months from the date of issuance of observations by Sebi.

The circular has been notified at a time when the IPO market is in full swing, in line with robust market sentiment, despite the Covid-19 pandemic. Three IPOs – UTI Asset Management Co, Mazagon Dock Shipbuilders and Likhita Infrastructure – kicked off for subscription today.

Meanwhile, Sigachi Industries has filed a draft red herring prospectus (DRHP) with the market regulator Sebi for an IPO.