May 12, 2020
Summary of the circular issued by MCA on 11/05/2020
Relaxation with respect to Dispatch of Notice towards Rights Issue under Companies Act, 2013 by Listed Entities for Rights Issue opening upto 31/07/2020
In line with various procedural relaxations granted by SEBI with respect to Rights Issue opening upto 31/07/2020 vide its circular dated 06/05/2020 due to CoVID-19 pandemic, MCA, too, has clarified that the inability of listed entities to dispatch notices through postal or courier service under Section 62(1)(a)(i) of the Companies Act, 2013 would not be viewed as violation of Section 62(2) of the Act, which requires notice to be dispatched through registered post or speed post or through electronic mode or courier or any other mode having proof of delivery to all the existing shareholders at least three days before the opening of the issue.
Aforesaid circular is integrated in our free-to-use website www.ca2013.com for your ready reference.
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