Section 53 in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
53. Restriction on rights issue.
(1)No issuer shalt make a rights issue of equity shares if it has outstanding fully or partly convertible debt instruments at the time of making rights issue, unless it has made reservation of equity shares of the same class in favour of the holders of such outstanding convertible debt instruments in proportion to the convertible part thereof.(2)The equity shares reserved for the holders of fully or partially convertible debt instruments shall be issued at the time of conversion of such convertible debt instruments on the same terms on which the equity shares offered in the rights issue were issued.
