Articles

Shareholders holding securities in physical form can participate in open offers

by ELP LAW Advocates and Solicitors
SEBI has issued following clarification/ relaxation under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations):

1.Clarification on participation in open offers, buy-backs and exit offers of voluntary or compulsory delisting by shareholders holding securities in physical form

Regulation 40(1) of the LODR Regulations prohibits processing of requests for transfer of securities of a listed entity unless the securities are held in dematerialized form with the depository, except in cases of transmission or transposition of securities. In this regard, SEBI has issued a clarification stating that shareholders holding securities in physical form will be allowed to tender shares in open offers, buy-backs through tender offer route and exit offers in case of voluntary or compulsory delisting. Aforementioned clarification has been issued by SEBI vide its Circular dated July 31, 2020 (available here).

2.Extension of relaxation for use of digital signature certificate

Due to COVID-19, SEBI has permitted use of digital signature certifications for authentication/certification of filings/submissions made under the LODR Regulations to the stock exchanges, till December 31, 2020, vide Circular dated July 31, 2020 (available here). Earlier, SEBI had permitted the use of digital signature certifications for authentication/certification of filings/submissions made under LODR Regulations to the stock exchanges till June 30, 2020 vide its Circular dated April 17, 2020.
We trust you will find this an interesting read. For any queries or comments on this update, please feel free to contact us at insights@elp-in.com

Disclaimer: The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/quasi-judicial authorities may not take a position contrary to the views mentioned herein.

MUMBAI | NEW DELHI | BENGALURU | AHMEDABAD | PUNE | CHENNAI

Email: Insights@elp-in.com

© Economic Laws Practice 2020


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About ELP LAW Junior   Advocates and Solicitors

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Joined APSense since, March 5th, 2018, From Delhi, India.

Created on Aug 4th 2020 03:03. Viewed 128 times.

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