What is the purpose of observation letter issued by Stock Exchange(s) under SEBI (Obligations and Disclosure Requirements) Regulations, 2015?
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · June 2018
What is the purpose of observation letter issued by Stock Exchange(s) under SEBI (Obligations and Disclosure Requirements) Regulations, 2015?
Answer & Explanation:
A listed entity desirous of undertaking a scheme of arrangement or involved in a scheme of arrangement shall under Regulation 37 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 file the draft scheme of arrangement, proposed to be filed before any Tribunal under Sections 230-234 and section 66 of Companies Act, 2013, whichever applicable, with the stock exchange(s) for obtaining Observation Letter or No-objection letter (letter with the comments of the stock exchange and SEBI on the draft scheme), before filing such scheme with any Tribunal, in terms of requirements specified by the Board or stock exchange(s) from time to time. The listed entity shall place the Observation letter or No-objection letter of the stock exchange(s) before the Tribunal at the time of seeking approval of the scheme of arrangement.
Topics: Corporate Restructuring
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