Clarification on dispatch of notice under section 62(2) of Companies Act, 2013 by listed companies for rights issue opening upto 31st July, 2020

General Circular No. 21 /2020

F. No.

2/4/2020-CL-V

Government of India

Ministry of Corporate Affairs

5th Floor, 'A' Wing, Shastri Bhawan,

Dr. R. P. Road, New Delhi-110001

Dated:

11th May,

2020

To

All Regional Directors,

All Registrar of Companies

All Stakeholders

Subject: Clarification on dispatch of notice under section 62(2) of Companies Act, 2013 by

listed companies for rights issue opening upto 31st July, 2020

Sir/Madam,

Several representations have been received in the Ministry for providing clarification on

the mode of issue of notice referred to in section 62(1)(a)(i) of Companies Act (the 'Act') read with

section

62

(2) of the Act for rights issue by listed companies, in view of the difficulties faced by

companies in sending notices through postal or courier services on account of the threat posed by

Covid-19. The issues raised in the said representations have been examined. The Circular (Number

SEBI/HO/CFD/DIL2/CIR/P/2020/78) issued by SEBI on 6th May, 2020 has also been considered.

2.

In view of above and on account of the overall situation, it is hereby clarified that for rights

issues opening upto

31stJuly,

2020, in case of listed companies, which comply with the

aforementioned SEBI Circular dated 6th May, 2020, inability to dispatch the notice referred in para 1

of this Circular to their shareholders through registered post or speed post or courier would not be

viewed as violation of section 62(2) of the Act.

3.

This issues with the approval of the competent authority.

Yours faithfully

(Atma Sah)

Deputy Director

Copy to:-1. e-Governance Section and Web Contents Officer for placing this circular on the Ministry's

website

2. Guard File