August 26, 2011
The Commission has noted that issuing houses to public offers do not do follow-up communication with issuers after the remittance of issue proceeds.
The Commission hereby reminds all issuing houses of the provision of rule 65(2) of SEC Rules and Regulations which states that “the issuer and the issuing house shall file with the Commission not later than 90 days after the clearance of allotment reports on utilization of proceeds of issue”. This puts a joint responsibility on the issuer and the issuing house.
This circular has become necessary in view of the observed failure/refusal of some issuers to render quarterly returns on utilization of issue proceeds.
The Commission wishes to emphasize that responsibility for the rendition of returns is both that of the issuer and the issuing house. Henceforth the Commission will sanction both the issuer and issuing house for failure to render the statutory returns as and when due.
Securities & Exchange Commission