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Renunciation of Right Issue

N S (7 Points)

07 August 2021  

 

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 (Practicing Compnay Secretary)   (42970 Points)
Replied 09 August 2021

1. This transaction is valid and allowed in Law.

1 Like

CS Divesh Goyal (Practicing Compnay Secretary)   (42970 Points)
Replied 09 August 2021

2. You can call it as back door entry.

1 Like

N S (7 Points)
Replied 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?


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