SEBI further streamlines the process of Rights Issue to ensure there is a minimum gap of three working days for investor to make application in Rights Issue
The Securities and Exchange Board of India in a recent Circular has amended the minimum time period for closure of trading in Right Entitlements (“RE”) on the secondary market platform of stock exchanges. While previously trading in REs on the secondary market platform of stock exchanges would commence along with the opening of the issue and would be closed at least four days prior to the closure of the rights issue, it will now be closed at least three working days prior to the closure of the rights issue.
The change has been implemented to ensure there is a minimum gap of three working days considering two days for settlement and one additional day for investor to make application in Rights Issue.
