Can we transfer Rights issue shares to someone else?

kav4 · 1 Can we transfer Rights issue shares to someone else? Sat Aug 06, 2011 11:10 am

kav4

Senior Manager - Equity Analytics

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Join date : 2011-06-17

Can we transfer Rights issue shares to someone else if we do not want to get them?

That means can I buy one of my friend's rights issue share potion if he doesn't need them?

If yes what is the procedure.

cse.alpha

cse.alpha

Senior Manager - Equity Analytics

Posts : 336
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Join date : 2011-01-28

Rights entitlements cannot be transferred privately now (a few years ago it was possible I think).

They have to be sold in the market, after lodging Rights documents with CDS - this is simple, requires just completing and signing Form B of the Rights docs, relating to Renunciation to the CDS.

However when selling in the market (as .R shares), you have will have to face the usual buying and selling pressure of the market - so there is no guarantee that you can buy your friend's rights entitlement at the price you have agreed upon. After buying the Rights entitlements, then you will have to pay for the Rights on the due date.

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Can we transfer Rights issue shares to someone else?

1 Can we transfer Rights issue shares to someone else? Sat Aug 06, 2011 11:10 am

kav4

2 Re: Can we transfer Rights issue shares to someone else? Sat Aug 06, 2011 12:20 pm

cse.alpha

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