Shares Right Issue

Common Questions

Most Popular Questions

A right issue of shares refers to the issuance of additional shares to existing shareholders in proportion to their existing shareholding, enabling them to maintain their ownership percentage in the company.

Reasons may include raising additional capital, rewarding existing shareholders, funding expansion projects, or enhancing liquidity in the market.

The procedure typically involves obtaining board approval, offering shares to existing shareholders at a predetermined price, obtaining shareholders' approval, updating company records, and filing necessary forms with the RoC.

Yes, all existing shareholders have the right to participate in a right issue of shares, subject to their entitlement as per the terms of the issue.

Benefits may include the opportunity to increase shareholding at a discounted price, maintaining ownership percentage in the company, and potential capital appreciation.

The company can offer unsubscribed shares to other shareholders or raise capital through alternative means.

Absolutely! CAA offers comprehensive support, from drafting resolutions and notices to processing applications, allotting shares, and managing filings with the ROC.

Yes, restrictions may include compliance with SEBI regulations, approval requirements, pricing guidelines, and disclosure requirements, if applicable.

Documents such as board resolution, notice of the general meeting, offer letter to shareholders, Form PAS-3, and necessary forms for filing with the RoC are required.

The process must be completed within a specified timeline, as per the requirements of the Companies Act, 2013, and any applicable regulations.

Non-compliance may lead to legal challenges, rejection of the issue by regulatory authorities, penalties imposed by SEBI, and adverse impact on the company's compliance status and reputation.

Yes, Avenue Advisory provides expert assistance for conducting right issues of shares, including drafting of resolutions, preparation of documents, filing with the RoC, and compliance monitoring.

Shareholders may have tax liabilities depending on the offer price and holding period of the new shares. Consult a tax professional for specific advice.

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