Market regulator planning to reduce rights issue timeline to 31 days

Currently, it takes 26 days from the notice of the board meeting to the opening of the rights issue

Market regulator Securities and Exchange Board of India (Sebi) is planning to halve the rights issue timeline — the duration between a company deciding to launch the rights issue and the listing of new shares. Currently, it takes a little less than two months for the rights issue process to complete. Sebi has proposed changes to the framework which will bring down the timeline to just 31 days.

“It can be observed from past transactions that once the rights issue price and terms are announced, the stock price or the company and the rights issue price begin to converge, leaving little