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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 ..... I (Issue of Capital and Disclosure Requirements) Regulations, 2018 ( ICDR Regulations ) and SEBI (Listing Obligations and Disclosure 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) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nounce their entitlements by trading on stock exchange platform or off-market transfer. Such trades will be settled by transferring dematerialized REs through depository mechanism, in the same manner as done for all other 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, 202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation in writing on a plain paper. B. Credit of Rights Entitlements ( REs ) in dematerialized form a. The depositories shall put necessary procedures in place for issue and credit of REs in demat mode. b. The issuer making a rights issue of specified securities shall ensure that it has made necessary arrangements with depositories to issue and credit the REs in demat mode in the demat accounts of shareholders 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Issuer shall also carry these links on their website. j. If the demat account of a shareholder is frozen or demat account details are not available, including shares held in unclaimed suspense account or in the account of IEPF Authority, then REs shall be credited in a suspense escrow demat account of the Company and an intimation should be sent to such shareholder by the issuer /Registrar to the issue. k. The issuer shall intimate issue closing date to the depositories at 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 R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f rights issue. D. Submission of Application form in Rights Issue a. All investors (including renouncee) shall submit application forms using ASBA facility through the Self Certified Syndicate Banks (SCSB) network during the issue period. b. Investor shall submit only one application form for REs available in a particular demat account. E. Allotment process in the rights issue a. Facility for correction of bid data as collated by the SCSBs after issue closing shall be provided for period of one day i.e. on next working day after issue closing. b. Registrar shall obtain demographic details of all applicants from depositories. c. Registrar shall obtain details of holders of REs as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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