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    Eligibility of Right Issue of Shares

    Posted By : Juhee Goyal / Published on : 14-Apr-2023 08:26 AM / View : 374 / Comment : 1

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    Hi Friends!

    Would an individual be eligible for the rights issue if shares are purchased on the ex-date/record date?
    Read more on : shares issue right eligibility

    • In order to be eligible for a rights issue, an investor must hold shares of the company on the record date set by the company. The record date is typically a few days after the ex-date, which is the date on which the shares begin trading without the rights entitlement.

      If an individual purchases shares of the company on the ex-date or after, they will not be eligible for the rights issue because they would not have been a shareholder on the record date.

      However, if the individual purchases shares of the company before the ex-date, they will be entitled to participate in the rights issue and can exercise their right to purchase additional shares at the discounted price offered through the rights issue.

      It is important for investors to carefully review the terms and conditions of the rights issue, including the record date and the subscription price, before deciding whether to participate in the rights issue.

      17-04-2023 / 10:03:00 AM
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