SEBI issued a circular recently for streamlining the process of "Rights Issue". Explain the need of this circular and the changes made therein for the process of Rights Issue.

SEBI circular streamlining the process of Right issue SEBI has streamlined the rights issue process and provided that the trading in Right Entitlements (REs) on the secondary market platform of stock exchanges commence along with the opening of the right issue and has to be closed at least three working days (earlier requirement of four days) prior to the closure of the rights issue. SEBI received representation from the market that in case there are trading holidays between the last date of REs trading date and issue closure, the provision of the minimum gap of four days may not always ensure that there are adequate days for settlement, as minimum 2 working days are required for the settlement of REs traded on last day of REs trading window. REs traded on the exchange platform have a T+2 rolling settlement.