Sebi to reduce time taken for rights issue process to 31 days

New Delhi: Markets regulator Sebi on Wednesday decided to reduce the overall time taken for rights issue to 31 days from the current 55, a move aimed at making the process more efficient. Besides, the regulator has made ASBA (Applications Supported by Blocked Amount) facility as a mandatory mode of payment for all investors applying to shares on rights basis, Sebi said. Payment through ASBA facility is investor friendly and enables faster completion of the post issue process. In addition, it has introduced dematerialised and trading of rights entitlements on stock exchanges. The new norms are aimed at significantly reducing the timeline for the completion of rights issue, which will ultimately benefit the shareholders.