Understanding SEBI’s updated Rights Issue regulations

21/07/2025 7 min
Understanding SEBI’s updated Rights Issue regulations

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Episode Synopsis

In this episode of the EY India Insights Podcast, we decode the recent changes to SEBI’s rights issue regulations, effective April 2025. Joining us is Gigy Mathew, Director, Transactions and Corporate Finance (TCF), EY India, who provides expert insights into how these updates are reshaping corporate fundraising in India.Gigy explains the strategic significance of rights issues for companies and shareholders, outlines the key regulatory reforms—from faster timelines to reduced documentation—and examines how these changes enhance transparency and ease compliance.Key highlightsRights issue allows existing shareholders to buy additional shares at a fixed price to avoid dilution.SEBI’s new framework mandates completion of rights issues within 23 working days (earlier 4–6 months).Share allotment and bid validation processes are now fully automated.Only a concise Letter of Offer is required; no need for a draft version.Merchant banker involvement is no longer mandatory. Listen now and stay informed on SEBI’s latest Rights Issue reforms