Differential Voting Rights in New Avatar

Abstract

This Study delves into the connection between ordinary equity and differential voting rights (DVR) shares in India. The study encompasses both statistical and regulatory comparisons with international economies. The analysis reveals a robust correlation between common shares and DVR shares, although a significant price gap exists between them. In contrast, in the United States, there is nearly no price disparity between common equity and dualclass shares. The regulatory frameworks in India and the USA exhibit some variations that could account for this price discrepancy. Also, providing guidance related to swap ratios while merging different classes of shares can provide clarity to investors.