What is SEBI’s Role in an Issue?

Any company making a public issue or a listed company making a rights issue of value of more than Rs 50 lakh is required to file a draft offer document with SEBI for its observations. The company can proceed further on the issue only after getting observations from SEBI. The validity period of
SEBI’s observation letter is three months only i.e. the company has to open its issue within three months period.