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Is rights issue mandatory?

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A rights issue gives the rights to the shareholder but does not put any obligation to buy the additional shares.

It is not mandatory to buy the rights offered. A shareholder can either:

  1. Ignore their rights and let it lapse.
  2. Transfer or sell the rights to other interested investors.

Topic: Rights Issue of shares - Definition, Benefits, Eligibility and Prices Article

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Find more questions on this topic

  1. What is a rights issue?
  2. Who can apply for rights issue?
  3. Why are rights issue offered?
  4. What are the advantages of rights issue?
  5. How do I apply for the rights issue?
  6. What happens if I do not subscribe to my rights?
  7. Are rights issue good for shareholders?
  8. Can I buy rights issue shares?
  9. Can I sell rights issue?
  10. Can rights issue be applied online?
  11. Can rights issue be oversubscribed?
  12. Can rights issue be sold?
  13. What will happen to my RE shares if I do not apply for rights issue?
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