Karnataka High Court sets aside NCLT stay on second rights issue by Byju's

The Karnataka High Court has overturned an NCLT stay on Byju's second rights issue, citing procedural irregularities. Byju's sought to issue additional shares to raise funds, but faced legal hurdles after a shareholder alleged non-compliance with SEBI regulations. The High Court ruled that the NCLT exceeded its jurisdiction by halting the rights issue, emphasizing that SEBI holds authority over such matters. This decision highlights the importance of regulatory compliance in corporate fundraising activities and clarifies the role of SEBI in overseeing equity issuances by listed companies. It underscores the need for companies to navigate regulatory frameworks meticulously to avoid legal challenges that could delay crucial financial operations.