The Securities Exchange Board of India vide circular dated May 19, 2022 has issued the revised process of rights issue. SEBI received market representation that in case there are trading holidays between last date of REs trading date and issue closure, provision of minimum gap of four days may not always ensure that there are adequate days for settlement, as minimum 2 working days are required for settlement of REs traded on last day of REs trading window (REs traded on exchange platform have T+2 rolling settlement).
It is therefore decided that there should be a minimum gap of three working days considering two days for settlement and one additional day for investor to make application in Rights.
