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CS Professional · Strategic Management and Corporate Finance · Raising of Funds from Equity and Procedural Aspects - Public Funding

Under section 62(2), how must the rights offer notice be sent to existing shareholders, and by when?

The notice must go to all existing shareholders by registered post, speed post, electronic mode, courier or another mode having proof of delivery, at least three days before the issue opens.

  1. ABy ordinary post only, at least 30 days before issue opens
  2. BThrough registered post, speed post, electronic mode, courier or any other mode having proof of delivery, at least three days before the opening of the issueCorrect
  3. CBy newspaper advertisement only, on the day the issue opens
  4. DThrough any mode, at least 15 days before the issue closes

Explanation

Section 62(2) requires dispatch through registered post, speed post, electronic mode, courier or any other mode with proof of delivery to all existing shareholders at least three days before the opening of the issue. Ordinary post or only an advertisement does not satisfy this.

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