One-time relaxation with respect to validity of SEBI Observations
SEBI circular HO/49/11/11(123)2026-CFD-RAC-DIL2/I/8760/2026 · 07 Apr 2026
SEBI circular HO/49/11/11(123)2026-CFD-RAC-DIL2/I/8760/2026 · 07 Apr 2026
Summary
Check the official recordThe Securities and Exchange Board of India (SEBI) has granted a one-time relaxation regarding the validity of SEBI observation letters for public issues. This measure addresses challenges faced by issuers in mobilizing resources due to geopolitical tensions and subdued market conditions. Observation letters that were set to expire between April 1, 2026, and September 30, 2026, are now extended until September 30, 2026. To avail of this extension, the Lead Manager to the issue must provide an undertaking confirming compliance with Schedule XVI of the ICDR Regulations when submitting the updated offer document to the Board. This circular is effective immediately.
What you must do
Key dates
Who is affected
Thresholds
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
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.
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
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.
This circular shall come into force with immediate effect.
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 the interests of investors in securities and to promote the development of, and to regulate the securities market.
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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