Avail 20% discount on updated CA lectures for Dec 21 .Use Code RESULT20 !! Call : 088803-20003

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

N S   07 August 2021

Renunciation of Right Issue

 

Is this mean the "Right" can be give up / transferred to any other person??

Let's say "A" shareholder got rights and transferred to Non-shareholder "B" and now "B" became a shareholder of that company

If YES, Is this like a BACKDOOR of IPO/FPO/B not purchased shares in stock market to become shareholder? So companies can skip regulations of public issues?

 

 



 3 Replies

CS Divesh Goyal

CS Divesh Goyal (Practicing Compnay Secretary)     09 August 2021

1. This transaction is valid and allowed in Law.

1 Like
CS Divesh Goyal

CS Divesh Goyal (Practicing Compnay Secretary)     09 August 2021

2. You can call it as back door entry.

1 Like
N S

N S   09 August 2021

@ divesh sir, for listed COs rights can be renounced only through stock exchanges. So this backdoor for listed means indirectly purchasing shares from stock market? Am I correct?


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Related Threads


Loading
Start a New Discussion

Popular Discussion


view more »







Subscribe to the latest topics :
Search Forum:

Trending Tags