SEBI1 min read
Rights Issue
An offer by a listed company to its existing shareholders to subscribe to additional shares in proportion to their current holding at a discounted price, under SEBI ICDR Regulations. Shareholders can renounce their rights in favour of others.
Last updated: 17 May 2026
Frequently Asked Questions (FAQs)🔗
Q1. What is Rights Issue in Indian corporate law?▼
An offer by a listed company to its existing shareholders to subscribe to additional shares in proportion to their current holding at a discounted price, under SEBI ICDR Regulations. Shareholders can renounce their rights in favour of others.
Q2. Why is Rights Issue important for compliance?▼
Rights Issue is regulated by the Securities and Exchange Board of India under applicable SEBI regulations. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Q3. Who should know about Rights Issue?▼
Rights Issue is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with SEBI regulatory matters in India.
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