The Securities and Exchange Board of India vide its notification dated 1st February 2022 has made amendments to its earlier on scheme of arrangement by listed entities in the Part 1 Para A(2K).
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) inter alia provides that a scheme of arrangement/ amalgamation/ merger/ reconstruction/ reduction of capital, etc. (Scheme) to be presented to any court or tribunal should not in any way violate, override or limit the provisions of securities laws or requirements of the stock exchanges.
The following amendment in Para1 Para A 2K of the master circular will be applicable to all the Scheme(s) filed with the stock exchanges from 16 November 2021.
Insertion of Para A.2.(k) of Part I of the 2020 Circular:
No Objection Certificate (NOC) from the lending scheduled commercial banks/ financial institutions/ debenture trustees, from not less than 75% of the secured creditors in value.
Along with filing application under Regulation 37 of the Listing Regulations, a listed entity undertaking a Scheme is now required to submit a no-objection certificate from its lending scheduled commercial banks/ financial institutions/ debenture trustees.
