What will be the Impact of right shares in secondary market?

Various banks and financial institutions are planning to come out with the rights shares? What would be its impact on the secondary market? Sandeep Bikram Rana Fundamental Analyst As per the monetary policy, the banks and financial institutions need to hike their paid up capital. The banks and other financial institution can increase their paid up capital either by issuing bonus shares, right shares or by going into a merger. Companies with good earning and good reserve can increase their paid up capital by issuing bonus shares, but companies with poor earning will have to issue right shares. The immediate effect of the issuance of right shares will be positive for the secondary market. In the long run, I think the impact would be negative as the right shares will increase the supply of shares in the secondary market. Also If the banks fail to maintain the profit in the ratio of the increased paid of capital than it will affect the price of the shares negatively. Sagun Shakya Technical Analyst The market is functioning over 1200 points. Technically, at present the market is in a bullish trend. Issuance of right shares when the market is at bullish trend will remain positive for the market. Krishna Prashad Khanal Investor In my opinion right issuance by the banks and financial institutions will be positive for the secondary market. The market might come down by some points after the book closure, but later it will again be in an upward trend. The big investors won’t let the market come down.