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SEBI guidelines for right issue?

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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,...

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