SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021

SMD/POLICY/CIR-35/97
December 22, 1997

To,

The President/Executive Director/Managing Director
of All the Stock Exchanges

Dear Sir,

Please refer to the clarification No. XXI to the Guidelines for Disclosure and Investor Protection providing for 100% book building process for new issues which was communicated to the stock exchanges vide SEBI Circular No. SMD/POLICY/CIR-33/97 dated December 05, 1997. Under the 100% book building process for the new issues it has been provided that there shall be a minimum time gap of 5 days between the statutory public advertisement and the date of opening of the issue. In order to enable companies which are making issues to the public other than through the book building process to raise funds from the capital market quickly and economically, it is necessary to reduce the time period between the filing of offer documents with ROC and the opening of the subscription list from the present level of 24 days to a reasonable period. In this regard, it has been decided by SEBI to reduce the time gap required between the filing of offer documents with ROC and the date of opening of the subscription list from the present level of 24 days to a period of 10 days. This time period of 10 days would include for both the activities of despatch of prospectus and application forms to the members of the stock exchanges as well as the public announcement of the issue. The above requirement shall be applicable for all issuer companies making an issue of capital to the public through prospectus.

The stock exchanges are advised about the above decision for their necessary action.

Yours faithfully,
O.P.GAHROTRA
SR. EXECUTIVE DIRECTOR

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