sebi
Published on 6 April 2025
NSE EMERGE Mandates Disclosure of Issue Proceeds Utilization for Listed Entities
Circular on Disclosure for Utilization of Issue Proceeds for Listed Entities on NSE EMERGE
The National Stock Exchange of India (NSE) has issued a significant circular (Ref No: NSE/CML/2024/23) as of September 5, 2024, that mandates compliance from all listed entities on the NSE EMERGE platform.
Key Requirements
Starting April 1, 2023, each listed entity on the NSE EMERGE platform is obliged to submit a certificate along with their financial results that details the utilization of issue proceeds. The following aspects are required to be included in the certificate:
- Certification by Statutory Auditor: The certificate must be certified by the statutory auditor of the entity following the approval from the audit committee.
- Object-wise Disclosure: The certificate should specify the amounts allocated for each object as disclosed in the offer document, the actual utilization of those funds, and any variations from the original disclosures. This must adhere to the format provided in Annexure A.
Annexure A Format
Entities must prepare their submissions according to the following structure in Annexure A:
| Sr. No. | Object as Disclosed in the Offer Document | Amount Disclosed in the Offer Document | Actual Utilized Amount | Unutilized Amount | Remarks |
|---|---|---|---|---|---|
| 1 | Object 1 | ||||
| 2 | Object 2 | ||||
| 3 | Object 3 | ||||
| Total |
Important Note: If the object of the investment pertains to subsidiary(ies), the utilization details of the proceeds must be certified by the respective statutory auditor(s) of those subsidiary(ies).
Conclusion
This circular aims to enhance transparency regarding the utilization of funds raised by listed entities, thereby ensuring accountability. All listed entities are urged to comply with these requirements to maintain good standing with the NSE EMERGE platform.