Securities and Exchange Board of India (SEBI) has taken a significant step towards expediting the capital-raising process for companies by reducing the timeline for completing rights issues to 23 days.
A major highlight of the new rule is the reduction of the subscription period for rights issues. Under the revised guidelines:
- Rights issues must remain open for a minimum of 7 days and can be kept open for a maximum of 30 days.
- The validation of application bids for subscribing to shares in the rights issue and the finalisation of the basis of allotment will now be carried out by stock exchanges, depositories, and the registrar to the issue.
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.
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