On Mar. 4, IND SEBI introduced new framework for rights issues.
IND SEBI introduced a new framework for the rights issue process through the SEBI (issue of capital and disclosure requirements) (amendment) regulations, 2025.
Recognized stock exchanges and depositories must inform stakeholders about new framework, upgrade systems, and amend by-laws, rules, and bidding portals.
Follows IND SEBI Nov. 2024 issued circular on issue of capital, disclosure, #233343.
Document dated Mar. 4, 2025, received from IND SEBI Mar. 10, summarized Mar. 12.
New Framework
Rights issues must now be completed within 23 working days from board approval.
Revised timeline specifies various activities from approval to closure of rights issue, with adjustments for convertible debt issues requiring shareholder approval.
Subscription period is set at 7 to 30 days; IND SEBI has required the development of automated bid validation system by stock exchanges, depositories within 6 months.
Changes in Master Circular
Including updates on disclosure of right entitlements (REs) in offer letter, online application forms, requirement for bid data corrections by issue closure date.
Application supported by blocked amount (ASBA) process extended to rights issues.
Effectiveness
Regs come into force on the date of publication in the official gazette, Mar. 4, 2025.
Mar. 11, 2025 Circular
On Mar. 11, 2025, IND SEBI issued circular re framework for the rights issue process.
The circular comes into force from Apr. 7, 2025.
Regulators
IND SEBI
Entity Types
B/D; Depo; Exch
Reference
OG SEBI/LAD-NRO/GN/2025/233, 3/4/2025; Cir SEBI/HO/CFD/CFD-PoD-1/P/CIR/2025/31, 3/11/2025
