Mumbai Mumbai: To help companies raise capital rapidly, the Securities and Exchange Board of India (SEBI) has reduced the deadline to complete the rights issue from April 7 to 23 days.

In a circular, the capital market regulator has also provided the flexibility of allocation to specific investors in the rights issue.

SEBI said, “As part of the new structure, in the context of the revised regulation of SEBI (issue of capital and disclosure requirements) Regulations, 2018 (SEBI ICDR Regulations), it is specified that the rights issue will be completed within 23 working days from the date of approval by the board of the Rights.”

It said, “In the context of Regulation 87 of SEBI ICDR Regulations and in view of the revised time limit, it is being specified that the rights issue will be kept open for membership for a period of at least seven days and maximum thirty days.” The application for the subscription of shares in the rights issue will also be done in association with the registrar of the issue by the Stock Exchange and Depository with the registrar of the issue.

According to the market regulator, the provisions of this circular will be applicable from April 07, 2025 and will apply to the rights issue approved by the board of directors from the date of implementation of this circular.