In order to make the process efficient and effective, the Securities Exchange Board of India has simplified the right issue process by amending the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations") and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations"), vide notification no. SEBI/HO/CFD/DIL2/CIR/P/2020/13 dated January 22, 2020.
- The period for advance notice to stock exchange(s) has been reduced from at least 7 working days to at least 3 working days, for the purpose of rights issue.
- Issuance of newspaper advertisement disclosing date of completion of dispatch and intimation of same to the stock exchanges for dissemination on their websites shall be completed by the issuer at least 2 days before the date of opening of the issue.
- The issuer shall disclose the process of credit of Rights Entitlements (REs) in the demat account and renunciation thereof, in the letter of offer and the abridged letter of offer. Rights Entitlements shall be credited to the demat account of eligible shareholders in dematerialized form.
- Rights Entitlements shall be traded on secondary market platform of Stock exchanges, with T+2 rolling settlement, similar to the equity shares. Trading in Rights Entitlements shall commence along with the opening of the issue and shall be closed at least four days prior to the closure of the rights issue.
- Application for a rights issue shall be made only through ASBA facility. No withdrawal of application shall be permitted by any shareholder after the issue closing date.
- The detailed procedures on the Rights Issue process is stated in Annexure I of the notification.
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