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    Eligibility for Right Shares

    Posted By : Juhee Goyal / Published on : 25-Apr-2023 05:00 AM / View : 206 / Comment : 1

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    Hi Everyone!

    If shares are sold after the ex-date/record date, would eligibility for the rights issue still apply?
    Read more on : shares right eligibility

    • No, The ex-date and record date are important dates in relation to a rights issue of shares.

      In most cases, the eligibility for a rights issue is determined based on the shareholder's ownership on the record date. The ex-date is the first day the shares trade without the right to receive the upcoming dividend or rights issue. If you sell your shares after the ex-date or record date, you may lose your eligibility for the rights issue.

      For example, if the record date for a rights issue is May 1 and you sell your shares on May 2, you would not be eligible to participate in the rights issue, even if you owned the shares on the record date. On the other hand, if you sell your shares before the ex-date, you would be entitled to receive the rights issue even if you no longer own the shares on the record date.

      It's important to check the specific terms of the rights issue to confirm the eligibility requirements and deadlines for participation.

      25-04-2023 / 06:29:40 AM
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