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BYJU’S Ordered to Keep Proceeds from Rights Issue in Escrow Account, Consider Extension by NCLT

NCLT directs BYJU’S to place proceeds from its rights issue in an escrow account and consider extending the closure date, following a petition by investors.

The National Company Law Tribunal (NCLT) in Bengaluru has directed BYJU’S to place the proceeds from its ongoing rights issue into a separate escrow account. The NCLT also suggested considering an extension of the closure date for the rights issue, which is set to end on February 28. This directive aims to safeguard the rights of petitioners, including Prosus, Peak XV Partners, General Atlantic, and Sofina, who have raised concerns about the company's actions along with other promoters.

The NCLT's interim order underscores the importance of ensuring that all stakeholders, especially investors, are treated fairly and have adequate time to participate in the rights issue. The tribunal has requested responses from the Ministry of Corporate Affairs, SEBI, and RBI within two weeks and scheduled the next hearing for April 4.