Section 61 in The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
61. Entities not eligible to make a rights issue.
- An issuer shall not be eligible to make a rights issue of specified securities:(a)if the issuer, any of its promoters, promoter group or directors of the issuer are debarred from accessing the capital market by the Board;(b)if any of the promoters or directors of the issuer is a promoter or director of any other company which is debarred from accessing the capital market by the Board.(c)if any of its promoters or directors is a fugitive economic offender.Explanation: The restrictions under (a) and (b) above will not apply to the promoters or directors of the issuer who were debarred in the past by the Board and the period of debarment is already over as on the date of filing of the draft letter of offer with the Board.
