Monday March 9 2026

News Source: Global Exchanges

Focus: Stock Exchange Regulation

Type: General

Country: India

Link: https://tinyurl.com/mr3ud3ud




On 6th March 2026, the International Financial Services Centres Authority (IFSCA) proposed a consultation paper on the regulatory framework for rights issues by listed entities in the IFSC.

The salient features of the proposed framework for rights issue are as under:

Eligibility Requirements:

Entities not eligible to make a rights issue:

An issuer shall not be eligible to make a rights issue of specified securities if the equity shares of the issuer are suspended from trading as a disciplinary measure.

General Conditions:

The issuer making a rights issue of specified securities shall ensure that:

  1. it has made an application to one or more recognized stock exchanges along with the draft letter of offer to seek an in-principle approval for listing of its specified securities on such recognized stock exchanges and has chosen one of them as the designated stock exchange; and
  2. all its existing partly paid-up equity shares have either been fully paid up or forfeited.
  3. it shall file a letter of offer with the Authority for information and dissemination on the website of Authority along with fees as specified by Authority.

Record Date

The issuer shall announce a record date for the purpose of determining the shareholders eligible to apply for specified securities in the proposed rights issue for such period as may be specified by the board of directors of the issuer.

Disclosures in letter of offer:

  1. The draft letter of offer and letter of offer shall contain all material information and disclosures as specified in regulation 38 of the Listing Regulations.
  2. Further, the issuer shall disclose the process of credit of rights entitlements in the demat account, renunciation of rights entitlements and trading thereof in the draft letter of offer and letter of offer.
  3. The issuer shall also disclose the details of specified investors.

Pricing:

  1. The board of directors of the issuer shall decide the issue price, before determining the record date.
  2. For deciding the issue price, the issuer may also consult with the designated stock exchange.
  3. The issuer shall disclose the issue price in the letter of offer filed with the Authority and the recognized stock exchange(s).

Regulatory Objective:

The objective of this framework is to provide listed companies with a mechanism for raising capital through rights issue in a fast track and streamlined manner.

Click on the above link for further information