Summary of the NSE Circular dated 29/09/2023
This circular is integrated in our free-to-use website ca2013.com.
NSE notifies Revised SOP on application filed to the Stock Exchanges w.r.t Scheme of Arrangements.
NSE, in reference to the draft scheme of arrangement to be filed with the stock exchanges has revised the existing SOP to be followed by the listed entities. The key highlights from the revised SOP are below:
1. The Scheme of Arrangement seeking Stock Exchange’s NOC shall be submitted to the Exchange along with all the documents as set forth in the exchange Checklist within 15 working days of board meeting approving the draft scheme of arrangement failing which, the Company shall take fresh approval from its Board.
2. Audited Financials of last 3 years not older than 6 months of unlisted companies involved in the Scheme of Arrangement shall also be submitted along with the application.
3. Audited financials considered for preparation of Valuation Report, should not be older than 3 months on the date of valuation report and detailed working of valuation under different methods shall also be disclosed.
4. The Board shall consider the scheme within 7 working days of issuance of valuation report.
Further, the circular also clarifies the detailed procedure for the Exchange Queries wherever there are material inadequacies or non-compliance with the SEBI circulars and the due course of action to be taken by the companies in such cases.
Click here to view the NSE Circular.