CA Update Reduction in minimum offer period for Rights Issue

PUBLISHED ON: 13-02-2021

MCA has revised the offer period for a rights issue under Section 62 of the Companies Act, 2013, vide the Companies (Share Capital and Debentures) Rules, 2014 dated February 11, 2021 (available here).

• For a rights issue, earlier the minimum offer period was 15 days, and maximum was 30 days, from the date of the offer. 
• Now, the minimum time period within which the offer shall be made for acceptance is 7 days from the date of offer. 

The aforementioned notification shall come into come into force from April 1, 2021.