Sebi to modify rights issue norms

Market regulator Securities and Exchange Board of India will have its board meeting on June 18 to take a view on some far-reaching reforms on the rights issue.

The meeting is widely expected to discuss measures to rationalise the rights issue disclosure norms and on reducing the issue processing time, sources said.

Rights issues are those which entitle existing shareholders to buy newly issued shares at a discount.

Sources said, as part of the rationalisation, Sebi is likely to modify some disclosures while dropping others.

While bringing about these changes, all efforts will be made by the regulator to protect the interest of existing investors, sources said.