Faster Rights Issue with a flexibility of allotment to specific investor(s)
Summary
This circular establishes a 23-working-day timeline for completing Rights Issues under the SEBI ICDR Regulations, 2018. It mandates that Rights Issues remain open for subscription for a minimum of seven days and a maximum of thirty days. The document also outlines specific procedural modifications to the Master Circular on SEBI ICDR Regulations and assigns validation responsibilities to Stock Exchanges and Depositories.
Text
Rights Issues shall be completed within 23 working days from the date of Board of Directors of the Issuer approving the Rights Issue.
Rights Issue shall be kept open for subscription for a minimum period of seven days and for a maximum period of thirty days.
Validation of application bids received for subscribing to the shares in Rights Issue and finalization of basis of allotment shall also be carried out by the Stock Exchanges and Depositories along with the Registrar to the issue.
A system for automated validation of applications by the investors shall be developed by the Stock Exchanges and Depositories within a period of six months from the date of applicability of this Circular.
In the letter of offer the issuer shall disclose the process of credit of REs in the demat account and renunciation thereof.
Applicants can use application form available on the website of registrar to the issue or printed forms sourced from the issuer or registrars to the issue.
Correction of bid data as collated by the SCSB after issue closing shall be completed on the issue closure date itself.
For rights issues the issuer shall file the letter of offer with SEBI through email at cfddil@sebi.gov.in and the payment of filing fees shall be made online through payment link provided on SEBI website under the fees category “Filing Fees”.
ASBA facility in rights issue enables an investor / shareholder to apply through ASBA mode... The role and responsibilities of SCSBs, Stock Exchanges and RTAs for public issues, shall be applicable mutatis mutandis to rights issue also.
The Recognized Stock Exchanges and Depositories are directed to bring the contents of this circular to the notice of all the stakeholders; put in place necessary systems and infrastructure for monitoring and implementation of this circular; make consequential changes, if any, to their respective bye-laws, rules and regulations and bidding portal;
The provisions of this circular shall come into force from April 07, 2025 and shall be applicable to the Rights Issues that are approved by the Board of Directors of the Issuer from the date of coming into force of this circular.
This Circular is being issued in exercise of the powers conferred under Section 11 and Section 11A of the Securities and Exchange Board of India Act, 1992 read with Regulation 299 of SEBI ICDR Regulations, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Faster Rights Issue with a flexibility of allotment to specific investor(s). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.