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 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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