Transaction & Regulatory Advisory Update

April 16, 2025

Transaction & Regulatory Advisory Update – March 2025

In this edition we have tried to bring to your notice the latest amendment that followed in the month of March, 2025 issued by MCA, SEBI and RBI.

SEBI

Faster Rights Issue with a flexibility of allotment to specific investor

SEBI vide its circular dated March 11, 2025, introduced changes to streamline the Rights Issue process, aimed at improving efficiency and flexibility. Under the new framework, the Rights Issue must be completed within 23 working days from the Board of Directors’ approval, with the subscription period ranging from a minimum of 7 days to a maximum of 30 days.

Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, 2025

SEBI vide its circular dated March 12, 2025 has amended the Securities and Exchange Board of India (Prohibition of Insider Trading) (Amendment) Regulations, 2025. These amendments aim to enhance the regulatory framework governing insider trading in India, ensuring greater transparency and accountability in the securities market.

Disclosure of holding of specified securities in dematerialized form

SEBI, through its Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, has made modifications to the disclosure requirements of shareholding patterns and the maintenance of shareholding in dematerialized format under Regulation 31 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

FCRA

Extension of the validity of FCRA registration certificate

The Ministry of Home Affairs has issued a public notice extending the validity of FCRA registration certificates for certain categories of registered entities. Entities whose registration validity was extended until March 31, 2025, and whose renewal applications are pending, will have their validity further extended until June 30, 2025, or until the renewal application is processed, whichever is earlier. Similarly, entities whose five-year validity period expires between April 1, 2025, and June 30, 2025, and have applied or will apply for renewal before expiration, will have their validity extended until June 30, 2025, or until the renewal application is processed, whichever is earlier. It’s important to note that if a renewal application is refused, the registration certificate will be considered expired on the refusal date, and the association will not be eligible to receive or utilize foreign contributions.

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