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Rights Issue by Listed Companies – SEBI's 23-Working-Day Framework

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.

Overview

How a Listed Rights Issue Works

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.

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What This Service Covers

What We Help With

1

Planning the issue timeline and record date

2

Board and shareholder approvals

3

Letter of offer preparation and exchange in-principle approval

4

Rights entitlement credit and renunciation process with the registrar

5

Allotment, listing and post-issue reporting

Key Facts

23 working days

Issue to be completed within 23 working days from board approval (issues approved on or after 7 April 2025).

No SEBI draft filing

Stock exchanges grant in-principle approval instead of SEBI observations.

Merchant banker

Optional for many rights issues under the 2025 changes.

Rights entitlements

Credited in demat form and tradable during the renunciation period.

Specific investors

Promoters can renounce entitlements to identified investors with disclosure.

Monitoring

Use of proceeds is monitored as prescribed.

Common Issues

Common Issues

The shorter timeline leaves little room for slippage.

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Related Services

Related services

Rights issues connect with these services.

Listing Compliance

Ongoing LODR compliance.

Rights Issue (Unlisted)

Rights issues by private companies.

Insider Trading Compliance

PIT compliance around the issue.

Increase Authorised Capital

Capital increase before the issue.

Documents Required

Documents we need from you

Company Records

Issue Documents

Our Process

How the Process Works

1

Plan

Set timeline, price and ratio.

2

Approve

Board approval starts the 23-day clock.

3

Exchange approval

Obtain in-principle approval.

4

REs

Credit rights entitlements after record date.

5

Issue

Open and close the issue.

6

Allot & list

Allot shares and list them.

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After the Issue

After the Issue

Post-issue steps complete the process.

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Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    How long does a rights issue take now?

    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.

    About Expertvuw

    Who Handles Your Rights Issue

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    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.

    Expertvuw Management Pvt Ltd