Streamlining the Process of Rights Issue
Summary
This circular amends the minimum time period between the closure of trading in Right Entitlements and the closure of a rights issue from four days to three working days. The change addresses settlement delays caused by trading holidays, ensuring adequate time for T+2 settlement and investor application. This amendment applies immediately to all rights issues and fast track rights issues.
Text
The words ‘at least four days’ are replaced with ‘at least three working days’ in para 1.4.1 and Annexure I para C (e) of the Circular.
This circular shall be applicable for all rights issues and fast track rights issue with immediate effect.
All entities involved in the Rights Issue process are advised to take necessary steps to ensure compliance with this circular.
The recognized stock exchanges are directed to bring the provisions of this circular to the notice of the listed companies and also to disseminate the same on their website.
This circular is being issued in exercise of the powers under section 11 read with section 11A of the Securities and Exchange Board of India Act, 1992.
Source: SecMarx — Streamlining the Process of Rights Issue. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.