- +91 80768 85539
- info@expertvuw.com
- Pan-India service available.
Home / SEBI & Capital Markets / Rights Issue by Listed Companies
Last updated: 2 October 2026
A rights issue lets a listed company raise capital from existing shareholders in proportion to their holdings. SEBI’s 2025 changes shortened the process to 23 working days from board approval. Expertvuw’s team manages the corporate approvals, stock exchange filings and timeline.
Rights issues by listed companies are governed by section 62 of the Companies Act, 2013 and Chapter III of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Existing shareholders receive rights entitlements (REs) in demat form, which they can apply for, renounce or trade on the stock exchange during the renunciation period.
Through amendments in March 2025, SEBI fast-tracked rights issues. For issues approved by the board on or after 7 April 2025, the issue must be completed within 23 working days from the board meeting approving it. The draft letter of offer is no longer filed with SEBI for observations — the stock exchange grants in-principle approval — and appointing a merchant banker is optional for many issues, with the company taking responsibility for disclosures. Promoters may renounce their entitlements to specific investors, subject to disclosure.
The shorter timeline makes advance planning important: record date, RE credit, issue opening and closing, basis of allotment and listing all fall within a tight window.
Basis: Companies Act, 2013 (section 62); SEBI (ICDR) Regulations, 2018, as amended in March 2025; SEBI circular on rights issue timelines; stock exchange procedures. Last updated: 27 September 2026.
Issue to be completed within 23 working days from board approval (issues approved on or after 7 April 2025).
Stock exchanges grant in-principle approval instead of SEBI observations.
Optional for many rights issues under the 2025 changes.
Credited in demat form and tradable during the renunciation period.
Promoters can renounce entitlements to identified investors with disclosure.
Use of proceeds is monitored as prescribed.
The shorter timeline leaves little room for slippage.
p
E
n
Rights issues connect with these services.
Ongoing LODR compliance.
Rights issues by private companies.
PIT compliance around the issue.
Capital increase before the issue.
Set timeline, price and ratio.
Board approval starts the 23-day clock.
Obtain in-principle approval.
Credit rights entitlements after record date.
Open and close the issue.
Allot shares and list them.
Post-issue steps complete the process.
i
i
e
p
Share your query and our team will reply during business hours.
Issues approved on or after 7 April 2025 must be completed within 23 working days from board approval.
The draft letter of offer is no longer filed with SEBI for observations; stock exchanges grant in-principle approval.
Not for many issues under the 2025 changes, though the company remains responsible for disclosures.
Yes. Rights entitlements are credited in demat form and can be traded during the renunciation period.
Yes, subject to disclosure requirements.
ACS – Director, Expertvuw Management Pvt Ltd
SEBI applications and filings are prepared by Expertvuw’s team. Certificates, audits and due diligence that SEBI regulations reserve for practising professionals or registered intermediaries are provided by independent registered professionals, and representation before SEBI or SAT is made by advocates or authorised professionals.