Differential Voting Rights in New Avatar

Authors

  • Latha Chari Professor, National Institute of Securities Markets, Mumbai
  • Vishwesh Deshmukh Independent Researcher, Mumbai
  • Mukta Shirke Management Trainee, National Stock Exchange, Mumbai

DOI:

https://doi.org/10.33516/maj.v58i10.94-100p

Keywords:

No Keywords

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.

Downloads

Download data is not yet available.

Published

2024-03-23

How to Cite

Chari, L., Deshmukh, V., & Shirke, M. (2024). Differential Voting Rights in New Avatar. The Management Accountant Journal, 58(10), 94–100. https://doi.org/10.33516/maj.v58i10.94-100p

Issue

Section

Dual Class Shares

References

Yan, Min. “Permitting dual class shares in the UK premium listing regime–a path to enhance rather than compromise investor protection.” Legal Studies 42, no. 2 (2022): 335-357.

Gurrea-Martínez, Aurelio. “Theory, evidence, and policy on dual-class shares: a country-specific response to a global debate.” European business organization law review 22 (2021): 475-515.

Wadhwa, Manick. “Differential Voting Right Shares in IndiaLegal and Valuation Perspective.” Available at SSRN 3210154 (2018).

Consultation Paper on Issuance of shares with Differential Voting Rights by SEBI, https://www.sebi. gov.in/reports/reports/ mar-2019/consultationpaper-on-issuance-of-shareswith-differential-votingrights_42432.html

Similar Articles

<< < 29 30 31 32 33 34 35 36 37 38 > >> 

You may also start an advanced similarity search for this article.