SEBI Board Meeting 30 September, 2024 Amendment for Companies Proposing Fund raising or require Frequent Fund Raising. - MMJC

Amendment relevant for companies proposing fundraising or require frequent fund raising:

• Rights Issue to be completed in 23 working days from the date of Issuer’s Board Meeting Approving Rights Issue, as against present average timelines of 317 days.

• Requirement of filing Draft Letter of Offer with SEBI has been done away with instead it will be filed with stock exchanges for its in-principle approval and as the entity is already listed Stock Exchanges would confirm that the issuer is in compliance with LODR disclosure requirements.

• Letter of Offer to contain only the relevant incremental information regarding rights issue viz. object of issue, price, record date, entitlement ratio etc.

• Merchant Banker need not be appointed in case where the Issuer has completed the rights issue within 23 working days (appointment is made optional)

• Stock Exchanges and Depositories to concurrently carry out activities of Registrar to the issue   Stock Exchanges and Depositories to develop a system for automated validation of the applications in a period of six months.

• On appropriate disclosures made through advertisement promoters would be permitted to renounce their rights entitlements to any specific investor(s) and issuer can now allot under-subscribed portion of rights issue to any specific investor(s),

• To monitor the use of proceeds of the issue a monitoring agency will have to be mandatorily to appointed – irrespective of the issue size.

• SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 is proposed to be applicable to Rights Issue if the issue size is less than 50 Crore rupees.

https://www.sebi.gov.in/media-and-notifications/press-releases/sep-2024/sebi-board-meeting_87154.html