AS13

It means if you sell share which has Rights issue attached to it and later (ie) after right issue got over and the Market price of the share are reduced. Say for eg you sold 1 share with cum rights for 60rs. After right issue got over share price falls down to 55rs now the difference in the amount (60-55) Rs 5 shall be adjusted against cost of your investment ie it shall be reduced from your cost of investment.

HariPriya C

CA Final

★ 3K+

19-Feb-24 08:34

And this is done if your buy price is more than the current market value after right issue.

HariPriya C

CA Final

★ 3K+

19-Feb-24 08:35

Please follow this illustration for better understanding

HariPriya C

CA Final

★ 3K+

19-Feb-24 08:36

Thank you so much for such a wonderful expl., but I have one more doubt , why only cum right shares ? And not Ex-right ?

Thread Starter

Code X

CA Final

★ 960

19-Feb-24 09:16