Steps involved in issue of rights shares

1. Check whether the rights issue is within the authorised share capital of the company. If not, steps should be taken to increase the authorised share capital. 2. In case of a listed company, notify the stock exchange concerned the date of Board Meeting at which the rights issue is proposed to be considered at least 2 days in advance of the meeting. 3. Rights issue shall be kept open for at least 15 days and not more than 30 days. 4. Convene the Board meeting and place before it the proposal for rights issue. 5. The Board should decide on the following matters: (i) Quantum of issue and the proportion of rights shares. (ii) Alteration of share capital, if necessary, and offering shares to persons other than existing holders of shares in terms of Section 81(1A). (iii) Fixation of record date. (iv) Appointment of merchant bankers and underwriters (if necessary).

1. Check whether the rights issue is within the authorised share capital of the company. If not, steps should be taken to increase the authorised share capital. 2. In case of a listed company, notify the stock exchange concerned the date of Board Meeting at which the rights issue is proposed to be considered at least 2 days in advance of the meeting. 3. Rights issue shall be kept open for at least 15 days and not more than 30 days. 4. Convene the Board meeting and place before it the proposal for rights issue. 5. The Board should decide on the following matters: (i) Quantum of issue and the proportion of rights shares. (ii) Alteration of share capital, if necessary, and offering shares to persons other than existing holders of shares in terms of Section 81(1A). (iii) Fixation of record date.