Photo:MintMumbai: Differential voting right (DVR) shares, which offer higher dividends but no voting rights, are set to make a comeback for listed companies after nine years. DVRs are a way for companies to raise equity capital without dilution of promoter shareholding. This will help them in raising equity without dilution of voting rights,” said the person cited above, requesting anonymity. “It has to be seen if the idea suits a majority of listed companies and if it needs to be allowed for top 100 or 500 listed companies on a test basis, as it had done for rules on integrated reporting or business responsibility reports. On 21 July, 2009, Sebi had issued a circular prohibiting issue of shares with superior voting rights by listed companies through amendments in the listing agreement.

Source: Mint December 18, 2018 19:03 UTC