The Securities Exchange Board of India vide circular dated November 16, 2021 has provided further clarifications on the processing of draft schemes for arrangements filed with the stock exchanges. The listed companies shall submit to the designated stock exchange a report from its Audit Committee and the Independent Directors certifying that the listed entity has compensated the eligible shareholders. Both the reports shall be submitted within 7 days of compensating the shareholders.
The addendum to the circular issued on 18.11.2021. The addendum provides that No Objection Certificate (NOC) from the lending scheduled commercial banks/financial institutions/debenture trustees shall also be submitted.
Any misstatement or furnishing of false information with regard to the said information shall make the listed entity liable for punitive action as per the provisions of applicable laws and regulations.
