Sebi rights issues timeline: Sebi cuts timeline to complete rights issues to just 23 days

Mumbai: The Securities and Exchange Board of India (Sebi) has reduced the timeline for completing rights issues to 23 days from 126 days. This will allow companies to raise capital faster through rights issues as compared to preferential issues, which take 40 days. The new rule would come into effect from April 7, 2025.

The regulator has also provided flexibility of allotment to specific investors in the rights issue.

In a circular on Tuesday, Sebi came out with the revised timelines for completion of the various activities involved in rights issue process from the date of board of directors of the issuer approving it to the date of closure of the issue.

“…in view of the revised timelines, it is being specified that rights issues shall be kept open for subscription for a minimum period of seven days and for a maximum period of 30 days,” Sebi said.

It also said validation of application bids received for subscribing to the shares in rights issue and finalisation of basis of allotment would also be carried out by the stock exchanges and depositories along with the registrar to the issue.