CIRCULAR
HO/49/11/11(123)2026-CFD-RAC-DIL2/I/8760/2026 April 07, 2026
To
All Registered Merchant Bankers
All Recognized Stock Exchanges
All entities who propose to list specified securities
Sir / Madam,
Subject: One-time relaxation with respect to validity of SEBI Observations
1. In terms of Regulations 44(1) and 59C of SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2018 (ICDR Regulations, 2018), a public issue
may be opened within twelve months and eighteen months respectively from
the date of issuance of observations by SEBI.
2. SEBI has received representation from the Industry body on difficulties faced
by the issuers in mobilizing resources and accessing the capital market in the
backdrop of ongoing geopolitical tensions in the Middle East. This has led to
several issuers to defer, recalibrate or withdraw issuance plans leading to
potential lapses in observation letter validity and duplication of regulatory
processes
3. Considering the representation of the Industry Body, the prevailing uncertain
market conditions due to ongoing geopolitical tensions and subdued investor
participation, SEBI has decided to grant one time relaxation to extend validity
of the SEBI Observations letters, expiring between April 1, 2026 - September
30, 2026 till September 30, 2026, subject to an undertaking from Lead
Manager to the issue confirming compliance with Schedule XVI of the ICDR
Regulations while submitting the updated offer document to the Board.
4. This circular shall come into force with immediate effect.
5. This Circular is issued in exercise of powers conferred under Section 11 and
Section 11A of the Securities and Exchange Board of India Act, 1992 to protect
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the interests of investors in securities and to promote the development of, and
to regulate the securities market.
6. This Circular is available at www.sebi.gov.in under the link “Legal > Circulars”.
Yours sincerely,
Bhumika Kanojia
Deputy General Manager
Corporation Finance Department
Email: bhumikak@sebi.gov.in
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