answersLogoWhite

0

Mumbai: Capital market regulator Sebi has amended the 'rights issue' norms that would now allow an issuer company to utilise the issue proceeds only after the basis of 'allotment of rights share' is finalised.

Earlier, the issuer company was allowed to utilise the rights issue proceeds after satisfying the designated stock exchange that its 'rights offer had received minimum 90% subscription'. The new amendment that has been brought in follows Sebi's decision of late last year to cut short the time period for allotment of shares in rights issue to 15 days from the previous 45 days. The Sebi circular said, "In view of this it has been decided to amend clause 8.19 of the Sebi (DIP) guidelines to provide that the issuer company can utilise the issue proceeds only after the basis of allotment is finalised."

"The amendment has brought more sanity to the rights issue norms", said Prithvi Haldea, managing director,...

User Avatar

Wiki User

14y ago

What else can I help you with?

Related Questions

SEBI guidelines on merchant banking in India?

OPERATION GUIDELINESS 1. Submission of offer document 2. Dispatch of issue material 3.Under writing 4.Compliance oligations a) association of resource personnel b) redressal of investors grievances c) submission of post issue monetary reports d) issue of no objection certificate d) registration of merchant bankers


Is Kolkata weir industries ltd under SEBI?

Yes, Kolkata Weir Industries Ltd is a publicly listed company and is therefore subject to regulations set by the Securities and Exchange Board of India (SEBI). As a publicly traded entity, it must comply with SEBI's guidelines regarding corporate governance, disclosures, and financial reporting. For the most current status and compliance, it's advisable to check SEBI's official website or the company's latest filings.


What are the advantages and disadvantages of SEBI?

vantage of sebi


What is the procedure to get certification as a portfolio manager from SEBI?

WHAT IS WORK OF SEBI AND WHO IS MAINTAIN WHAT IS WORK OF SEBI AND WHO IS MAINTAIN


Which of the following organisations recently issued some guidelines related to Participatory Notes as used in the financial world?

(SEBI) Securities and Exchange Board of India


When was Sebi Tramontana born?

Sebi Tramontana was born in 1960.


Is vibgyor sebi liste company?

vibgyor sebi listed


Who is The Ceo or Head of Sebi Please tell about Sebi?

SEBI is the primary governing/regulatory body for the securities market in India. All transactions in the securities market in india are governed & regulated by SEBI.


Is it necessary for the broker to get registered with sebi?

Yes. It is mandated by SEBI Act.


Role of SEBI in regulating merchant banking industry?

at are the roles of SEBI


Why is fund needed?

Since every firm wants to expand its business,needs more capital and shareholder's fund is a source of capital by using which business can be operated on large scale.To collect shareholer'd fund, issuer company (who requires fund) will make public issue by following guidelines laid down by SEBI.


Who is the chairman of SEBI 2011?

U . K. Sinha is the current chairman of SEBI