4.10 Rights Issue

The rights issue — the pre-emptive route: new shares offered first to the existing shareholders in proportion to their holdings (the pre-emption principle — the shareholder's protection against dilution by strangers). The mechanics: the notice of the offer, the ratio, the price (often a discount to market — lawful: the discount ban is on nominal value, not on market), the renunciation (the right's transfer — the rights certificate's trading), the lapsed portion's disposal (the board's options within the offer's terms). Nepal's practice: the listed companies' rights seasons (SEBON/NEPSE's processed route), the private company's closed equivalent (the transfer-approval discipline).