The FSA is proposing to reduce the minimum subscription period for companies undertaking a rights issue to either 14 calendar days or 10 business days.
The regulator said reducing the minimum subscription period from 21 calendar days will help make capital raising more efficient. The proposal follow recommendations made in the Rights Issue Review Group (RIRG) report to the Chancellor of the Exchequer in November last year. During a rights issue subscription period, existing shareholders of the company have the right to buy new shares in proportion to their existing holdings. These rights can also be bought and sold in the market. Sally Dewar, managing director of wholesale and institutional markets at the FSA, says reducing the subscript...
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