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The Securities and Exchange Board of India ("SEBI") vide its circular dated 07.04.2026 ("SEBI Observations Circular")1 has granted a one-time relaxation with respect to the validity of SEBI observation letters issued under the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018 ("ICDR Regulations").
In terms of Regulations 44(1) and 59C of the ICDR Regulations, a public issue is required to be opened within twelve (12) months and eighteen months (18) respectively from the date of issuance of observations by SEBI. SEBI noted that difficulties being faced by issuers in mobilising resources and accessing the capital markets due to the ongoing geopolitical tensions in the Middle East, leading to deferment, recalibration or withdrawal of issuance plans and possible lapses in validity of observation letters.
Noting these difficulties, SEBI has granted a one-time relaxation by extending the validity of observation letters expiring between 01.04.2026 and 30.09.2026 up to 30.09.2026. The extension is subject to submission of an undertaking by the lead manager to the issue confirming compliance with Schedule XVI of the ICDR Regulations at the time of filing the updated offer document with SEBI.
The SEBI Observations Circular has come into force with immediate effect i.e., from 07.04.2026.
Footnote
1. SEBI Circular on extension on validity of SEBI Observations
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