This is with reference to the SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2025/31 dated March 11, 2025 wherein SEBI  has specified the revised timelines for completion of the various activities involved in Rights Issue process from the date of Board of Directors of the Issuer approving the Rights Issue till the date of closure of Rights Issue. [Ref to our earlier Article on this: https://1-comply.com/2025/03/15/faster-rights-issue-with-a-flexibility-of-allotment-to-specific-investors/] 

As part of the new framework, 

• Rights Issues shall be completed within 23 working days from the date of Board of Directors of the Issuer approving the Rights Issue. 
• Rights Issue shall be kept open for subscription for a minimum period of seven days and for a maximum period of thirty days. 
• Validation of application bids received for subscribing to the shares in Rights Issue and finalization of basis of allotment shall also be carried  out by the Stock Exchanges and Depositories along with the Registrar to the issue. 
• A system for automated validation of applications by the investors shall be developed by the Stock Exchanges and Depositories.  

In view of the implementation of the above-mentioned SEBI circular, the following changes shall be applicable for the Rights Issue as per Notices/Circulars issued by both NSE and BSE: 

• DP and PAN details shall be validated real time during the rights ASBA issue period and rectification of mismatch (if any) can be performed near real time basis during the rights ASBA issue period. Please note that in case of mismatch either DP Details or PAN can be modified, but not both. 
• In view of the above, there shall be NO T+1 (T being the Closure Day of Right issue) mismatch modification session for PAN-DP mismatch on T+1 Day for already uploaded bids. Accordingly, the dedicated window provided for mismatch modification on T+1 shall be discontinued.
• Bid entry and modification/cancellation (if any) shall be allowed in parallel during the rights ASBA issue period. 
• There shall be no change in existing bulk upload file format and API structure for Rights Issues.   

NSE has further stated that all Participants are requested to take a note of these changes and are hereby advised that they shall enter/upload bids on Exchange E-IPO bidding platform well before bid closure time on last day of Rights Issue, so that users have sufficient time to modify mismatch bids (if any).  The provisions of the NSE circular 06/2025 dated  April 17, 2025 shall be applicable for all Right Issues opening on or after April 21, 2025.

BSE has also through its Notice 20250421-47 dated 21 Apr 2025 has notified that it has incorporated the aforesaid changes in the Internet Based Book Building Software (IBBS) of BSE. The changes shall be applicable for all Rights Issues starting for subscription on or after Wednesday April 30, 2025. BSE has further stated that all market participants including SCSBs (Self Certified Syndicate Banks) are requested to note that there is no change in the existing processes of placing of bids for rights issues on the IBBS platform through single/ manual entry, file upload (for bulk records) and API integration.

For further queries, one can contact the Exchanges as per the details provided below:

NSE: At helpdesk at Toll Free No: 1800 266 00 50 [Option 1]

BSE:  Activities                                      //    Email ID 

          Regulations & Business Rules  //    listing.sales@bseindia.com 

          Functionality of IBBS module    //    ibbs.ops@bseindia.com