Sebi cuts time period for filing application to obtain NOC for release of 1% of issue amount

Sebi reduced Monday's deadline to three months to allow companies to file an application to the regulator to obtain a 'No Objection certificate' to release 1% of the issue amount.The rules state that the issuer company must deposit 1% of the issue amount of securities offered to the public or to holders of existing securities with the designated stock exchange.After obtaining a Sebi No Objection Certificate (NOC), this amount is released to the issuer companies.The issuer company must submit an application to Sebi on its letterhead to request the release of the 1 percent issue amount. This is after the expiration of four months since the last listing.Sebi stated in a circular that "it has been decided to reduce to 2 months the time period for listing and submitting the application from the existing period 4 months."It is conditional on the resolution of all issues related complaints by the issuer or merchant banker.The merchant banker must also submit a certificate confirming all Self Certified Syndicate Banks' (SCSBs), involved in ASBA (Applications supported by Blocked Amount) have unblocked ASBA accounts.If the application isn't accompanied by a merchant banker's confirmation that all ASBA accounts have been "unblocked", the regulator will consider it incomplete.Stock exchanges were asked to notify all companies listed on the stock exchanges and to make the provisions available to them via their websites.