Disadvantages Of DVR Shares are as follows: Lower voting rights, reducing influence in company decisions. Potentially less liquid, making them harder to sell. May be viewed as less attractive to certain investors who value voting power.
Better return on investment DVR stocks fetch significantly higher returns for their owners as compared to an ordinary stock. This is one of the major differences between DVR and ordinary share. In fact, the gap in earnings between these two options can sometimes be as high as 20%.
Shares with DVR are essentially similar to an ordinary share. However, it extends limited voting rights to the shareholders. Typically, the number of shares with DVR to be held by each company differs from one firm to another. Nevertheless, shares with DVR cannot be more than 25% of the aggregate issued share capital.
Reliance INE002A01018, RELIANCE, 500325. Vodafone Idea INE669E01016, IDEA, 532822. CDSL INE736A01011, CDSL, 0. GTL Infra INE221H01019, GTLINFRA, 532775. Suzlon Energy INE040H01021, SUZLON, 532667.
Disadvantages and Risks of Investing in Unlisted Shares Limited Liquidity: Unlisted shares are not traded on stock exchanges, making them harder to sell. Higher Risk: Investing in unlisted shares requires more vigilance due to limited regulatory oversight and the inherent uncertainties of private companies.
Eligibility Criteria to Issue DVR Shares Companies need to meet these conditions for the issuance of shares with different voting rights. The issuance of share should be authorised by the Article of Association of the Company. Companies must have a record of distributable profits for the past 3 years.
How to apply for a Rights Issue? Investors can apply for Right Issue shares only through the Application Supported by Blocked Amount i.e. ASBA, either online or offline, if they hold Right Entitlement in their demat account.
Digital Video Recorders (DVR) disadvantages include: Requires local wiring and connectivity. Installation can be complex with multiple cameras and locations. Separate power supply required. Not suitable for use with IP camera.