The International Financial Services Centres Authority (IFSCA) on April 22, 2026, issued the framework for Rights Issue under the IFSCA (Listing) Regulations, 2024.
The following has been stated:
It has issued a comprehensive framework for rights issues by listed entities under the IFSCA (Listing) Regulations, 2024. It applies to entities listed solely on recognised stock exchanges in the IFSC and defines a rights issue as an offer of specified securities to existing shareholders as of a record date. Issuers must comply with applicable laws of their home jurisdiction along with IFSCA requirements, with home jurisdiction laws prevailing in case of irreconcilable conflict.
The framework outlines eligibility conditions, including that securities must not be suspended from trading, and requires issuers to obtain in-principle approval from recognised stock exchanges and file a letter of offer with the Authority. It mandates disclosure requirements, pricing norms (issue price to be decided before record date), and procedural aspects such as record date announcement, credit of rights entitlements in demat form, and allotment only in dematerialised form.
Detailed provisions are specified for renunciation (on-market and off-market), underwriting, monitoring of issue proceeds, minimum subscription, subscription period (minimum seven days), payment options, and handling of calls on shares. The allotment process prioritises existing shareholders and renounces, with provisions for additional allotment and specified investors in case of under-subscription.
The circular also prescribes timelines for allotment, refunds, and post-issue responsibilities, including investor grievance redressal, reporting requirements, and monitoring by stock exchanges. It restricts further capital issues during the rights issue process unless disclosed and protects investor interests by restricting alteration of rights without requisite approvals.
The framework is issued under Sections 12 and 13 of the IFSCA Act, 2019, read with relevant Listing Regulations, and comes into force with immediate effect
[F. No. IFSCA-PLNP/16/2024-Capital Markets]
