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?

 

 

Replies (3)
Quick Summary
This discussion clarifies the process of renouncing a rights issue. It confirms that shareholders can indeed give up or transfer their rights to another person, even a non-shareholder. This is likened to a 'backdoor entry' into becoming a shareholder, potentially bypassing traditional IPO/FPO regulations. For listed companies, such transfers must typically occur via stock exchanges.

1. This transaction is valid and allowed in Law.

2. You can call it as back door entry.

@ 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