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TMI BlogStreamlining the Process of Rights IssueX X X X Extracts X X X X X X X X Extracts X X X X ..... losure Requirements) Regulations, 2015 ("LODR Regulations"). Accordingly, following changes are made with respect to the Rights Issue process : 1.1. The period for advance notice to stock exchange(s) under Regulation 42(2) of LODR Regulations has been reduced from at least 7 working days to at least 3 working days (excluding the date of intimation and the record date), for the purpose of rights issue. 1.2. Issuance of newspaper advertisement disclosing date of completion of dispatch and intimation of same to the stock exchanges for dissemination on their websites, as per Regulation 84 (1) of ICDR Regulations, shall be completed by the issuer at least 2 days before the date of opening of the issue. 1.3. Introduction of dematerialized Righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther types of securities. 1.5. Payment mode - Application for a rights issue shall be made only through ASBA facility. 1.6. No withdrawal of application shall be permitted by any shareholder after the issue closing date. 2. The detailed procedures on the Rights Issue process are given at Annexure I for due compliance. 3. This circular shall be applicable for all rights issues and fast track rights issue where Letter of Offer (LoF) is filed with the stock exchanges on or after February 14, 2020. 4. All entities involved in the Rights Issue process are advised to take necessary steps to ensure compliance with this circular including the procedures stated at Annexure I of this circular. 5. This circular is being issued in exercise of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reholders holding shares as on the record date. c. A separate ISIN shall be obtained by the issuer for credit of REs. d. Issuer shall specify the ISIN for REs while announcing the record date. However, for issues where the record date is announced before February 14, 2020, and the letter of offer is filed with the stock exchanges on or after February 14, 2020, the Issuer shall file the letter of offer with the stock exchanges only after it has obtained ISIN for REs. e. Based on the rights entitlement ratio, the issuer shall credit REs in dematerialized mode through corporate action to shareholders holding shares as on record date. The ISIN of REs shall be kept frozen (for debit) in the depository system till the date of opening of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... least one day before the issue closing date, and the depositories shall suspend the ISIN of REs for transfers, from issue closing date. l. REs which are neither renounced nor subscribed by the shareholders, shall be lapsed after closure of the Rights Issue. m. Issuer Company shall ensure that REs which are lapsed are extinguished from the depository system once securities are allotted pursuant to Rights Issue. Once allotment is done, the ISIN for REs shall be permanently deactivated in the depository system by the depositories. C. Renunciation process and trading of REs on stock exchange platform: a. The stock exchanges shall put necessary procedures in place for trading of REs on stock exchange platform. b. REs credited to demat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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