No Objection Certificate, abbreviated as NOC is a legal document that is issued by an individual, institute, or organization which mentions that they have no objection to the details written in a document. A new objection certificate can be used for many things such as litigation, immigration, trade, employment, or any other purpose. A No Objection Certificate can be used for making a trade, business of any kind, or any offer. The purpose of the No Objection Certificate changes from person to person as to what they may require. The No Objection Certificate grants upper mission to the person seeking the NOC letter to do anything that's in question.

Securities and Exchange Board of India, on 5th July 2021 has issued a circular[1] to all the registered merchant bankers, recognized stock exchanges, and to all companies whose securities are listed on SEBI recognized Stock Exchange (through stock exchanges) Which deals with the issue of no objection certificate for release of 1% of issue amount.

Securities and Exchange Board of India had laid down guidelines for obtaining no objection certificate for the release of 1% of issue amount to a circular Dated 25th November 2019[2], according to which point two of the circular stated that an application on Letter Head addressed to Securities and Exchange Board of India is required to be submitted by the issuer company in a specified format that is given in Annexure – A. After the lapse of four months from listing on the exchange that is last to permit listing, to obtain the No Objection Certificate. The circular directs that there has been a reduction in the period after listing from applying from the existing period of 4 months to 2 months. This will be subject to the condition that the issues and complaints are resolved by the merchant banker. Additionally, a certificate confirming that all the self-certified syndicate banks involved in ASBA (Applications Supported by Blocked Amount) have unblocked ASBA accounts by the merchant banker. If the application Confirming that all the accounts in ASBA have been unblocked is not accompanied by a confirmation certificate by a merchant bank, the Securities and Exchange Board of India will consider the application incomplete.

The circular advises to bring the provisions of the circular to the notice of all listed companies and disseminate the same. Section 11 subsection 1 of the Securities and Exchange Board of India act, 1992 confers power to issue a circular to protect the interests of investors, promote development and regulate the securities market.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws being force In India, for the time being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Consulting & Governance shall not be responsible for any errors caused due to human error or otherwise.

[1] SEBI/HO/OIAE/IGRD/CIR/P/2021/588

[2] Circular No. CIR/OIAE/1/2009