Question

Write a note on renunciation of right shares. please write it if anyone knows (3marker)
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Answer 1

Explanation:

The renunciation of rights shares can be done either in part or full. There are two ways of renunciation:

On-Market Renunciation - This is the rights entitlements trading platform of the stock exchange wherein the rights can be renounced on the exchange floor at a better price. The on-market renunciation can happen only till the last date of the rights entitlement trading which is generally 3-4 working days before the issue closing date.

Off-market renunciation - In this case, the interested buyer and seller can mutually agree on the price and complete the renunciation off-market. The off-market renunciation can be done until the issue closure date however it should be done in such a way that the renouncee has sufficient time to apply for the rights issue before the issue closure date.

Answer 2

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