In case of listed entities, provisions of Rights Issue are governed by the SEBI (ICDR) Regulations, 2018, which has laid down the regulatory provisions for an issuer offering specified securities through a Rights Issue, such as eligibility requirements, disclosures requirement and filing of letter of offer, issuance conditions and procedure etc.
The new framework for Rights Issue process has been introduced by SEBI on March 08, 2025. These amendments are set to simplify capital raising via rights issue and streamlining compliances.
Key Discussion Points in the webinar are:
- New eligibility criteria – trading suspension impact.
- Renunciation of rights entitlement & introduction of specific investors.
- Elimination of merchant bankers & lead managers – issuer's direct responsibility.
- Specified Timeline – faster fund mobility.
- Mandatory appointment of monitoring agencies.
- Filing of offer documents: Revised process & SEBI's role.
- Flexibility in issue opening & closing period.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
