{"id":"F2016L01620","name":"ASIC Corporations (Renounceable Rights Issue Notifications) Instrument 2016/993","slug":"asic-corporations-renounceable-rights-issue-notifications-instrument-2016-993","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":438979,"registerId":"F2016L01620-fast-fetch-1775955177546","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ASIC Corporations (Renounceable Rights Issue Notifications) Instrument 2016/993","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: Draft updated legislative instrument - CO 02-225 (Rights issue notifications)\n---\n\n![Commonwealth Coat of Arms and ASIC logo](image.001.jpeg)\n\nASIC Corporations (Renounceable Rights Issue Notifications) Instrument 2016/993\n\nI, Grant Moodie, delegate of the Australian Securities and Investments Commission, make the following legislative instrument.\n\n \n\nDate  10 October 2016\n\n \n\nGrant Moodie\n\n \n\nContents\n\n[Part 1—Preliminary](#_Toc463535203)\n\n[1 Name of legislative instrument](#_Toc463535204)\n\n[2 Commencement](#_Toc463535205)\n\n[3 Authority](#_Toc463535206)\n\n[4 Definitions](#_Toc463535207)\n\n[Part 2—Exemption](#_Toc463535208)\n\n[5 Rights issue notifications](#_Toc463535209)\n\n \n\nPart 1—Preliminary\n\n1 Name of legislative instrument\n\nThis is the ASIC Corporations (Renounceable Rights Issue Notifications) Instrument 2016/993.\n\n2 Commencement\n\nThis instrument commences on the day after it is registered on the Federal Register of Legislation.\n\nNote: The register may be accessed at [www.legislation.gov.au](http://www.legislation.gov.au).\n\n3 Authority\n\nThis instrument is made under subsections 741(1) and 1020F(1) of the Corporations Act 2001.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Corporations Act 2001.\n\nDivision 3 asset has the same meaning as in subregulation 1.0.02(1) of the Regulations.\n\nDivision 3 rights has the same meaning as in subregulation 1.0.02(1) of the Regulations.\n\nexcluded person, in relation to an offer under a renounceable rights issue,  means a person who resides in a jurisdiction where, in the reasonable opinion of the body or responsible entity, it is not lawful or practicable to make the offer as at the time of the offer.\n\nRegulations means the Corporations Regulations 2001.\n\nrenounceable rights issue means:\n\n(a)  an offer of  a body’s securities for issue in respect of which the following conditions are met:\n\n(i) the securities being offered for issue are in a particular class;\n\n(ii) the offer is made to every person (other than an excluded person) who holds securities in that class to issue them, or their assignee, with the percentage of the securities to be issued that is the same as the percentage of the securities in that class that they hold before the offer;\n\n(iii) under the terms of the offer, the rights to acquire, by way of issue, the securities can be sold or transferred to another person; or\n\n(b) an offer of a interests in a managed investment scheme for issue in respect of which the following conditions are met:\n\n(i) the interests being offered for issue are in a particular class;\n\n(ii) the offer is made to every person (other than an excluded person) who holds interests in that class to issue them, or their assignee, with the percentage of the interests to be issued that is the same as the percentage of the interests in that class that they hold before the offer;\n\n(iii) under the terms of the offer, the rights to acquire, by way of issue, the interests can be sold or transferred to another person.\n\nrights renunciation form means:\n\n(a) Form 5, 6, 7 or 8 in Schedule 2A to the Regulations or a form that is substantially similar to one of those Forms; or\n\n(b) a notification form informing holders of Division 3 assets of their individual entitlement to acquire a specified number of Division 3 assets under a renounceable rights issue.\n\nPart 2—Exemption\n\n5 Rights issue notifications\n\nRenounceable rights issues—listed bodies\n\n(1) A person involved in the issuing of a rights renunciation form in the course of settling a sale of Division 3 rights in connection with a renounceable rights issue of securities of a listed body does not have to comply with subsections 721(1), 723(1) and 727(2) of the Act to the extent those subsections require a rights renunciation form to be included in, or accompanied by, a disclosure document.\n\nRenounceable rights issues—listed schemes\n\n(2) A responsible entity of a listed registered scheme who makes offers to issue and issues interests in the scheme in connection with a renounceable rights issue of interests in the scheme does not have to comply with sections 1012B and 1016A of the Act to the extent those sections require:\n\n(a) a rights renunciation form to be included in or be accompanied by a Product Disclosure Statement; and\n\n(b) the responsible entity to give a Product Disclosure Statement to a person (a transferee) to whom Division 3 rights are transferred or to a transferee who exercises such rights.\n\nConditions\n\n(3) Before offers are made in connection with a renounceable rights issue, the listed body or the responsible entity (as applicable) must:  \n\n(a) have arrangements in place to ensure that during the period that offers under the renounceable rights issue remain open:\n\n(i) the disclosure document or Product Disclosure Statement for the renounceable rights issue is made available for inspection at the registered office of the body or responsible entity or published on a website of the body or responsible entity;\n\n(ii) if requested by a person (other than an excluded person), the disclosure document or Product Disclosure Statement is given to the person free of charge;\n\n(b) announce to each prescribed financial market on which the body or scheme is listed that the arrangements specified in paragraph (a) have been or will be put in place.\n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument sets a targeted, limited exemption for renounceable rights issues of listed bodies and listed schemes and specifies conditions for that exemption (availability, free supply on request, market announcement). It operates under the stated powers in subs 741(1) and 1020F(1) and does not expand beyond the named categories or conditions in the instrument (see cls 3–5)."},"complexity_factors":["Cross‑references to multiple Corporations Act provisions (subss 721(1), 723(1), 727(2), and ss 1012B, 1016A) increase legal navigation complexity (see cl 5(1)–(2)).","Reliance on defined technical terms from the Regulations and instrument (renounceable rights issue, Division 3 rights/assets, excluded person, rights renunciation form) requires cross‑checking definitions (see cl 4).","Conditional, time‑bound exemptions impose ongoing operational obligations during the offer period (make disclosure/PDS available; provide free copies on request; announce to prescribed markets) (see cl 5(3)(a)–(b)).","Use of delegated legislative power (made under subs 741(1) and 1020F(1) of the Act) concentrates rule‑making and requires reading with parent Act provisions (see cl 3).","The 'excluded person' concept hinges on a 'reasonable opinion' by the issuer/responsible entity about lawfulness/practicability, introducing judgment and potential compliance risk (see definition of excluded person in cl 4).","Interaction with Regulation Schedule 2A forms (Forms 5–8) and alternative 'substantially similar' forms creates interpretive scope about acceptable form content (see definition of rights renunciation form in cl 4)."],"plain_english_summary":"This instrument creates a limited exemption for listed companies and listed managed‑fund responsible entities: when settling sales of renounceable rights they need not include a rights‑renunciation form inside, or accompany it with, the usual disclosure document or Product Disclosure Statement, provided certain conditions are met. Issuers and responsible entities must keep the disclosure document/PDS available for inspection or free supply on request and announce that arrangement to the market. The issuer/responsible entity bears the compliance actions and costs; investors rely on inspection or requested copies rather than automatic delivery."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument maintains its original narrow purpose: facilitating on-market trading of renounceable rights by exempting rights renunciation forms from full disclosure requirements. The scope remains tightly focused on settlement paperwork for rights trading, with appropriate safeguards (availability of underlying disclosure documents). No significant scope creep detected."},"complexity_factors":["Short instrument: only 5 sections plus definitions","Single operative provision (section 5) with two parallel subsections for companies vs managed schemes","4 defined terms, all referencing external legislation (Corporations Act and Regulations)","Simple conditional structure: exemption applies subject to 3 specific conditions in subsection (3)","No nested exceptions or complex cross-referencing beyond standard statutory definitions","Clear binary structure: listed bodies vs listed schemes, with mirrored requirements"],"plain_english_summary":"This instrument creates an exception to usual disclosure requirements for renounceable rights issues: when rights are traded on-market, the transfer paperwork need not be accompanied by a full prospectus/PDS. It affects listed issuers, responsible entities, brokers/settlement participants and shareholders selling rights, and prevents onerous paperwork for frequent trades.\n\nThe exemption requires the issuer to keep the full disclosure available online or at its office, provide free copies on request, and notify the exchange of these arrangements."}},"importantCases":[],"_links":{"self":"/api/acts/asic-corporations-renounceable-rights-issue-notifications-instrument-2016-993","history":"/api/acts/asic-corporations-renounceable-rights-issue-notifications-instrument-2016-993/history","analysis":"/api/acts/asic-corporations-renounceable-rights-issue-notifications-instrument-2016-993/analysis","conflicts":"/api/acts/asic-corporations-renounceable-rights-issue-notifications-instrument-2016-993/conflicts","importantCases":"/api/acts/asic-corporations-renounceable-rights-issue-notifications-instrument-2016-993/important-cases","documents":"/api/acts/asic-corporations-renounceable-rights-issue-notifications-instrument-2016-993/documents"}}