SEBI (Issue of Capital and Disclosure Requirements) (Sixth Amendment) Regulations, 2019

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Dec 30, 2019

SEBI (Issue of Capital and Disclosure Requirements) (Sixth Amendment) Regulations, 2019

The key amendments notified by SEBI on December 26, 2019 to the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 are as follows:

i. Disclosure: The process of credit of rights entitlements in the demat account and renunciation are required to be disclosed in the letter of offer and abridged letter of offer.

ii. ASBA: SEBI has made ASBA facility mandatory for applying for a rights issue. However, it is clarified that for applying for any reserved portion outside the issue period, payment through any other electronic banking mode is permissible. Consequently, SEBI has clarified that payment of balance money in calls, outside the issue period, can be made through electronic banking modes.

iii. Credit of rights entitlements and allotment: SEBI has mandated that the allotment of securities should be in dematerialised form only and the rights entitlements are required to be credited to the demat account of the shareholders, before the issue opening date.

iv. Withdrawal of application for subscription: SEBI has clarified that no withdrawal of application for subscription in the rights issue is permissible after the issue closing date.

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