SEBI Rights Issue: According to the market regulator, the provisions of this circular will come into effect from April 7, 2025 and will apply to rights issues approved by the board of directors of the issuer from the date of implementation of this circular.
SEBI Rights Issue: To help companies raise capital faster, the Securities and Exchange Board of India (SEBI) has reduced the time limit for completing rights issues from 126 days to 23 days, effective from April 7. In a circular, the capital market regulator has also provided flexibility for allotment to specific investors in rights issues.
SEBI said, “As part of the new framework, in terms of amended Regulation 85 of SEBI Regulations, 2018 (SEBI ICDR Regulations), it is being specified that the rights issue will be completed within 23 working days from the date of approval of the rights issue by the board of directors of the issuer.”
It said, “In accordance with Regulation 87 of SEBI ICDR Regulations and in view of the revised timeline, it is being specified that the rights issue will be kept open for subscription for a minimum of seven days and a maximum of thirty days.”
The verification of the application bids received for subscription of shares in the rights issue and finalization of the basis of allotment will also be done by the stock exchange and the depository in collaboration with the registrar of the issue.
According to the market regulator, the provisions of this circular will come into effect from April 7, 2025 and will apply to the rights issue approved by the board of directors of the issuer from the date of implementation of this circular.
Meanwhile, SEBI is going to discuss several key regulatory proposals in the upcoming first board meeting under the leadership of newly appointed chairperson Tuhin Kant Pandey. The proposed agenda includes UPI-like security for demat accounts, ensuring independence of clearing corporations, expanding the scope of qualified institutional buyers (QIBs) and changes in fee collection by research analysts. To enhance investor security, SEBI has proposed to implement a Unified Payments Interface (UPI)-like system for demat accounts.
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