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S. No. Para No. Text of the para Comments/Suggestions/Suggested Detailed Rationale
modifications
I. 6 Reference Date Definition of “reference date” has not been given in The definition would result in avoidance of
the draft circular. It must be defined. any ambiguity in the determination of
dates or filing draft letter of offer and letter
The same can be defined as under: of offer.
“Reference date” means the date of filing the draft
letter of offer with the recognized stock exchange(s)
and date of filing the letter of offer with the Authority
and the recognised stock exchange(s).
II. 7 Entities not eligible to make The ineligibility criteria for the entities for rights The suspension from trading of the equity
a rights issue issue should also include: shares being the only reason for
a. if the issuer, any of its promoters, promoter group ineligibility does not suffice the purpose of
An issuer shall not be eligible or directors of the issuer are debarred from maintaining market integrity.
to make a rights issue of accessing the capital market by the Authority,
specified securities if the and the period of debarment is not yet over;
equity shares of the issuer are b. if any of the promoters or directors of the issuer
suspended from trading as a is a promoter or director of any other company
disciplinary measure. which is debarred from accessing the capital
market by the Authority and the period of
debarment is not yet over;
c. if any of its promoters or directors is a fugitive
economic offender.
III. 14 Pricing In addition, there should be a minimum limit The issue of specified securities cannot
The board of directors of the specified for the issue price of the specified be done at discount, except in specific
issuer shall decide the issue securities. The following addition is suggested cases like sweat equity shares under
price, before determining the after para 14 and before para 15: section 53 of the Companies Act, 2013.
record date. For deciding the
issue price, the issuer may The issue price shall not be less than the face value
also consult with the of the specified securities.
designated stock exchange.
IV. 35 Allotment, refund and After para 35 following addition should be made: This mechanism of payment of interest in
payment of interest case delay in allotment or refund will
1Where the specified securities are not allotted and/ ensure prevention of misuse of
The issuer shall ensure that or monies are not refunded or unblocked within eight shareholders’ fund.
the specified securities are working days from the date of closing of the issue,
allotted and the payments and the issuer shall undertake to pay interest at the rate
refunds are completed within of fifteen per cent per annum to the eligible
eight working days from the shareholders within such time as disclosed in the
date of closing of the issue. draft letter of offer and the letter of offer.
V. 36-38 Post- Before para 36, following para may be added:
issue responsibilities
The designated stock exchange shall regularly
The issuer shall continue to monitor redressal of investor grievances arising from All the grievance pertaining to issue
be responsible for post-issue any issue related activities. should be monitored by the recognized
activities till the applicants stock exchange and to ensure their timely
have received credit to their After para 38, following additions may be made: redressal by the issuer.
demat account or refund of
application monies and listing In case there is a devolvement on underwriters, the
or trading permission is recognised stock exchange shall ensure that the
obtained. notice for devolvement containing the obligation of
the underwriters is issued within ten days from the
date of closure of the issue.
The obligations of the underwriters should
In case of undersubscribed issues that are also be mentioned in the post-issue
underwritten, the recognised stock exchange shall responsibilities, and appropriate
furnish information to the Authority in respect of disclosures must be made to the Authority
underwriters who have failed to meet their in this regard.
underwriting devolvement.
IFSCA Response: Based on the comments received, the draft circular regarding regulatory framework for rights issue was suitably modified and
placed before the Authority in the meeting held on April 17, 2026. The above comments/ suggestions were also placed before the Authority.
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