SEBI Withdraws Master Circular on No Objection Certificate (NOC) for 1% Issue Amount Release

The Securities and Exchange Board of India (SEBI) has withdrawn the Master Circular No. SEBI/HO/OIAE/IGRD/P/CIR/2022/0151, which required a No Objection Certificate (NOC) for the release of 1% of the issue amount by issuer companies. This change follows an amendment to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Although the NOC requirement is no longer applicable, stock exchanges must frame a joint Standard Operating Procedure (SOP) to handle the release of the 1% security deposit that was deposited by issuers before the amendments. The withdrawal of the Master Circular aims to streamline the process for issuers and reduce regulatory burdens. SEBI’s decision reflects its ongoing efforts to simplify regulatory requirements and enhance the ease of doing business in the securities market. The new SOP will ensure a smooth transition and provide clarity on the release of security deposits for issuers.