Renunciation of Right Issue

551 views 3 replies

 

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)

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?

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