Starting April 1, 2023, listed entities on the NSE EMERGE platform must submit a certificate detailing the utilization of issue proceeds alongside their financial results. This certificate, certified by a Statutory Auditor and approved by the Audit Committee, must outline the amount allocated for each object as per the Offer Document and the actual funds used. The report should also indicate any discrepancies between the disclosed and utilized amounts. This requirement will remain in place until the issue proceeds are fully utilized or the purpose is completed. However, this rule does not apply to entities with a monitoring agency appointed. The new directive is effective immediately and aims to enhance transparency in the use of funds raised by listed entities.
National Stock Exchange of India
Circular Download Ref No: NSE/CML/2024/23 Date: September 05, 2024
The Company Secretary,
All Listed Entities on NSE EMERGE
Subject: Disclosure for utilization of issue proceeds for Listed Entities on NSE EMERGE
The listed entity on NSE EMERGE platform w.e.f. April 01, 2023 onwards, shall submit to the Stock Exchange along with the financial results, a certificate indicating the utilisation of the issue proceeds certified by Statutory Auditor (post approval by the Audit Committee of listed entity) specifying the object wise amount as disclosed in the Offer Document(s) and the actual utilization of funds, along with any variation(s), if any as per the format prescribed in “Annexure A”.
The aforesaid certificate shall be submitted until the issue proceeds have been fully utilised or the purpose for which the proceeds were raised has been fulfilled.
This circular shall be applicable with immediate effect. Further, the circular shall not apply to the listed entity wherein the monitoring agency has been appointed.
Yours faithfully,
For National Stock Exchange of India Limited
Reema Punjani
Manager
Annexure A
| Sr. No. |
Object as disclosed in the Offer Document |
Amount disclosed in the Offer Document |
Actual Utilised Amount | Unutilised Amount |
Remarks |
| 1 | Object 1 | ||||
| 2 | Object 2 | ||||
| 3 | Object 3 | ||||
| Total | |||||
[Note: In case the object being investment in the subsidiary(ies), the details of utilisation of issue proceeds by its subsidiary(ies) shall be certified by respective Statutory Auditor of that subsidiary(ies)].
