Revised Rights Issue Process Announced, ASBA Bid Validation Tightened
SEBI mandates new timelines and bid validation protocols for Rights Issues, effective April 30, 2025. Real-time DP and PAN validation replaces the T+1 modification window. All rights issues must now be completed within 23 working days from board approval.
New SEBI Circular Streamlines Timeline, Ends Post-Closure Modification |
Mumbai: As per SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2025/31 dated March 11, 2025, Rights Issues must be completed within 23 working days from board approval. The subscription window will now remain open for a minimum of 7 days and a maximum of 30 days.
Real-Time Bid Validation Introduced
A new framework mandates real-time validation of DP and PAN details during the Rights Issue period. Validation will be jointly executed by Stock Exchanges, Depositories, and Registrars. Any mismatch can be rectified only during the issue period, and either DP or PAN can be corrected—not both.
T+1 Day Modification Discontinued
The post-issue (T+1 day) window for correcting PAN-DP mismatches has been removed. This change aims to reduce processing delays and improve efficiency.
Implementation via IBBS
These updates are now live on BSE’s Internet Based Book Building Software (IBBS) and will apply to all Rights Issues beginning on or after April 30, 2025.
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