SEBI has revised the timeline for trading in right entitlements on stock exchange

PUBLISHED ON: 23-05-2022

In order to ensure that investors have an adequate number of days for settlement of Right Entitlements and apply for rights issue thereafter, SEBI has amended the timeline for trading in dematerialised Right Entitlements on the secondary market platform of stock exchange.

• SEBI had notified that trading in Right Entitlements on stock exchanges is required to commence along with the opening of the rights issue and be closed at least four days prior to the closure of the rights issue.
• Now, trading in Right Entitlements on the stock exchange is required to close at least three working days prior to the closure of the rights issue.

The aforementioned was notified by SEBI vide a circular dated May 19, 2022 (available here) and would be applicable for all rights issues and fast track rights issue with immediate effect.