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Qatar’s bourse plans rights issue trading

Rights allow their holder to subscribe to a share issue, usually at a fixed price that may be lower than the market price

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Qatar’s stock exchange plans to allow investors to trade rights to share issues, which would let them profit from capital increases even without subscribing to them, the bourse said on Sunday.

Rights allow their holder to subscribe to a share issue, usually at a fixed price that may be lower than the market price. To exercise rights, investors need to commit more money - but if rights are tradable, investors can simply sell them.

The bourse gave no specific timeline for the reform but said it was working with regulators on the matter. Saudi Arabia’s bourse, the biggest market in the Gulf, already allows trades in rights.