SEBI has issued revised timelines for completion of the various activities involved in Rights Issue process from the date of Board of Directors of the Issuer approving the Rights Issue till the date of closure of Rights Issue. If the Issuer is making a Rights Issue of convertible debt instruments, wherein shareholders approval is required, then
the timelines for Rights Issue would be adjusted accordingly owing to shareholders’ approval.
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. Validation of application bids received for subscribing to the shares in Rights Issue and finalization of basis of allotment shall also be carried out by the Stock Exchanges and Depositories along with the Registrar to the issue.
A system for automated validation of applications by the investors shall be developed by the Stock Exchanges and Depositories within a period of six months.
