I have 300 shares of some xyz company, i have been allotted 56 shares in the rights issue.
Can i sell my 300 shares holding and participate fully like apart 56 shares(allotted) , i want to buy more number shares in the rights issue.
Please clarify with explanation.
Yes, the basis on which you receive the right to take part in the Rights issue is based on your holdings as on the Record date. Since you held the stock on Record date, you’re eligible to take part in the Rights issue.
Post that you can sell the stock, this will have no bearing to your Rights application.
Can i purchase more than my eligible criteria i.e., 56 shares?
Yes, you can purchase more than your eligibility. If you are eligible for 50 rights, then better apply for 100 or 150 or 120, based on your amount available.
Thank you so much.
I follow your channel often.
Please make videos in English:)
Wow… Overwhelmed… Thank you
I’ll try to do it in English, or would add subtitles.
Yes, in the application form, there’s an option to mention the additional quantities that you’d like to bid for. If the issue isn’t subscribed by such investors who have the rights, then you may get additional allotments