Section 62 in The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
62. General conditions.
(1)The issuer making a rights issue of specified securities shall ensure that:(a)it has made an application to one or more stock exchanges to seek an in-principle approval for listing of its specified securities on such stock exchanges and has chosen one of them as the designated stock exchange, in terms of Schedule XIX.(b)all its existing partly paid-up equity shares have either been fully paid-up or have been forfeited;(c)it has made firm arrangements of finance through verifiable means towards seventy five per cent. of the stated means of finance for the specific project proposed to be funded from issue proceeds, excluding the amount to be raised through the proposed rights issue or through existing identifiable internal accruals.(2)The amount for general corporate purposes, as mentioned in objects of the issue in the draft letter of offer and the letter of offer, shall not exceed twenty five per cent. of the amount raised by the issuer.(3)Where the issuer or any of its promoters or directors is a wilful defaulter, the promoters or promoter group of the issuer shall not renounce their rights except to the extent of renunciation within the promoter group.(4)[ Where the issuer has issued SR equity shares to its promoters or founders, then such a SR shareholder shall not renounce their rights and the SR shares received in a rights issue shall remain under lock-in until conversion into equity shares having voting rights same as that of ordinary equity shares along with existing SR equity shares.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2019/29, dated 29.7.2019.]
