SEBI plan to reduce timeframe of issuing rights issue

Industry regulatory body Securities and Exchange Board of India on Tuesday said it has proposed to reduce the timeframe of issuing of Rights Issue from the present 109 days to 60 days. "We are hoping that we can bring it down further but we need to increase the processes also", SEBI Chairman C B Bhave told reporters here. Referring to a query that the Rights Issue can be set through DeMAT process, he said they were examining the suggestion. "Our hope is that in the next few months, we will complete our examination of this issue, maybe put it on our website to get the people's comments and then we would take a decision", he said. On whether banks have accepted the SEBI's system of issuing the allotted shares to the investors account, he said five banks including some leading private and public sector banks have accepted the terms. (##include msid=3157120,type=9 ##) Corporation Bank, State Bank of India, HDFC Bank, ICICI and Union Bank of India had accepted the terms and five more banks have applied, he said. To another query whether this system would be made mandatory, he said it was too early to comment. "We have to see whether people like it or not", he said. On the Introduction of Currency Derivatives, he said introduction of borrowing facility is scheduled in April. He said SEBI had allowed Institutions to have Direct Market Access and asked them to also pay margins like retail investors pay margin on a 'D plus One' basis. On whether all listed companies are following the SEBI norms on the independent directories, Bhave said, "No some of them are not. In some cases we have issued them notices". There is an adjudication procedure under which these notices have been issued, he said, declining to name the companies.