SEBI has introduced new framework to make the Rights Issue process faster and more efficient. With these changes, companies can now complete the entire process within 23 working days from the date their Board of Directors approves the issue.
These new rules will take effect from April 7, 2025, and will apply to all Rights Issues approved from that date onward.
Highlights of the New Framework:
- The entire process of the Rights Issue must be completed within 23 working days after Board approval.
- The Subscription Period will remain open for a minimum of 7 days and a maximum of 30 days.
- An automated system will be developed by exchanges and depositories to streamline the verification of applications.
- The process now follows a clear schedule, from approval to trading.
Indicative timelines of the Rights Issue Process
Process after the Issue Closure
With these changes in place, Rights Issues will now be completed more quickly, improving liquidity for investors and providing better transparency with clear timelines.
For more details, you can refer to the SEBI circular here: SEBI | Faster Rights Issue with a flexibility of allotment to specific investor(s)