Clarification on dispatch of notice under section 62(2) of Companies Act, 2013 by listed companies for rights issues opening upto 31st December, 2020. (General Circular No. 27/2O20)

General Circular No. 27/2O20

 File No.2/4/2020-CL-V

Government of India

Ministry of Corporate Affairs 

"A" Wing, 5th Floor, Shastri Bhawan

Dr. R.P. Road, New Delhi 110001

Date 3rd August, 2O20 

To

All Regional Directors, 

All Registrar of Companies,

All Stakeholders

Sir/Madam,

Reference is drawn to this Ministry’s General Circular Number 21/2020 dated 11th May, 2020 regarding clarification on dispatch of notice under section 62(2) of Companies Act, 2013 by listed companies for rights issue opening upto 31st July, 2020. Representations have been received for extending the validity of such clarification. The Circular (Number SEBI/HO/CFD/DIL1/CIR/P/2020/136) issued by SEBI on 24th July, 2020 has also been considered. In view of this it has been decided that clarification given under para 2 of General Circular 21/2020 dated 11th May, 2020, would continue to be applicable for rights issues, in case of listed companies, opening upto 31st December, 2020. Accordingly, in case of listed companies, which comply with relevant circulars issued by SEBI, inability to dispatch the relevant notice to shareholders through registered post or speed post or courier would not be viewed as violation of section 62(2) of the Act for rights issues opening upto 31st December, 2020. Other requirements provided in the said General Circular remain unchanged.

2. This issues with the approval of the competent authority.

Yours faithfully.

(K.M.S. Narayanan)

Assistant Director (Policy)

Copy to:-

1. e-governance section and web contents officer to place the circular on MCA website and
2. Guard File.