Sebi extends validity period of IPOs, rights issues to one year

The Securities & Exchange Board of India (Sebi) on Thursday, 4 December 2008, decided to extend the validity of its approval for the initial public offers (IPOs) and rights issues from three months currently, to one year, subject to updating of documents by the issuer. Sebi has stipulated that companies will have to update the document with fresh numbers and another material changes whenever required. The board also approved electronic trading of rights entitlement in stock exchanges. The right entitlement will now be made available in demat form for all shareholders holding the underlying shares in demat form. Until now, a shareholder intending to renounce his/her rights entitlement had to do it by applying physically through a designated application form.