Mumbai, March 12 || In a bid to help companies raise capital faster, the Securities and Exchange Board of India (SEBI) has reduced the timeline for completing rights issues to 23 days from 126 days, effective from April 7.
In a circular, the capital markets regulator has also provided flexibility of allotment to specific investors in the rights issue.
“As part of the new framework, in terms of amended Regulation 85 of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations), it is being specified that Rights Issues shall be completed within 23 working days from the date of Board of Directors of the Issuer approving the Rights Issue,” said SEBI.
“In terms of Regulation 87 of SEBI ICDR Regulations and in view of the revised timelines, it is being specified that Rights Issue shall be kept open for subscription for a minimum period of seven days and for a maximum period of thirty days,” it added.
The validation of application bids received for subscribing to the shares in Rights Issue and finalisation of basis of allotment shall also be carried out by the Stock Exchanges and Depositories along with the Registrar to the issue.