Indian capital markets regulator SEBI has extended exemptions for companies to comply with the procedure rules related to the rights issue to open till March 31, 2022. As per the Issue of Capital and Disclosure Requirements Norms, the application for rights issue will be made through the ASBA (Application Supported by Blocked Amount) process only.
However, due to the COVID-19 pandemic and to ensure that all eligible shareholders can apply for the rights issue during such time, SEBI in May 2020 stated that the issuer, the principal manager of the issue, registrar and establish an alternative mechanism for accepting applications from shareholders along with other recognized intermediaries.
This will be subject to ensuring that no third party payment will be allowed in respect of any application. SEBI said in a circular that this exemption has now been extended and will be applicable to the rights issue opening till March 31, 2022.