banner_ad

Rights issue

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
16 March 2012 As per the latest rules, rights issue offer is required to be kept open for a minimum of 15 days. My question is :-

1) What is the maximum period for which the rights issue offer can be kept open?

2)Is there any difference in norms for listed and unlisted company as far as rights issue offer period is concerned or is it the same in both cases.
Profile Image

CA SURENDRA KUMAR RAKHECHA

Profile Image

CA SURENDRA KUMAR RAKHECHA (Expert)
17 March 2012 1. Maximum period is 15 days.
.
2. Unlisted companies don't offer right issue and neither these are covered by SEBI because these are unlisted.
.
3. Unlisted companies can issue shares to anyone to whom Board of Directors think fit.
.
4. Hence there is practically no need to follow such practice.
.

Please refer:
.
http://www.domain-b.com/investments/markets/sebi/20090821_sebi_trims.html
Profile Image

C A S.S.Agarwal, M.Com.,LL.B,

Profile Image

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
17 March 2012 You can issue right issue in unlisted companies but the SEBI guideline for right issue shall not be applicable to those companies.
Right issue means the further issue of capital to the existing shareholders of the company at a fixed price of shares which can be renounced in favour of any other person or persons and the shareholders cannot be forced to take or subscribe the shares so issued. Generally right issue is made at a premium which is lower then the market value or equiv-ant to the book value such formula is available for issue of right shares with other formalities of the companies act.
Profile Image

C A S.S.Agarwal, M.Com.,LL.B,

Profile Image

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
17 March 2012 You can issue right issue in unlisted companies but the SEBI guideline for right issue shall not be applicable to those companies.
Right issue means the further issue of capital to the existing shareholders of the company at a fixed price of shares which can be renounced in favour of any other person or persons and the shareholders cannot be forced to take or subscribe the shares so issued. Generally right issue is made at a premium which is lower then the market value or equiv-ant to the book value such formula is available for issue of right shares with other formalities of the companies act.
Profile Image

C A S.S.Agarwal, M.Com.,LL.B,

Profile Image

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
17 March 2012 You can issue right issue in unlisted companies but the SEBI guideline for right issue shall not be applicable to those companies.
Right issue means the further issue of capital to the existing shareholders of the company at a fixed price of shares which can be renounced in favour of any other person or persons and the shareholders cannot be forced to take or subscribe the shares so issued. Generally right issue is made at a premium which is lower then the market value or equiv-ant to the book value such formula is available for issue of right shares with other formalities of the companies act.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI
ChatGPT Perplexity Claude Google AI Grok

CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details