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Rights Issue Forms and Insurance for Wife

Author: Col Sanjeev Govila (retd)/Friday, February 24, 2017/Categories: Ask the Finapolis

Rights Issue Forms and Insurance for Wife

Two months ago my bank gave rights issue but it was very diffi cult to read the application form. It was in very small letters and I used magnifying glass of my neighbour to understand. Why they cannot print forms clearly and allow us to read? Is there any regulation regarding the process for rights issue? It was lot of tension for me to even understand what to do next because they have not mentioned proper process. 

- A Suman, Mahabaleshwar 

You’re right about this tendency of the companies to save on stationery by trying to fi t too much content on a page, due to which the font size reduces. Unfortunately there’s nothing much that can be done on this count. As far as I know, there is no regulation on the font size in a rights issue letter. Of course, a company should be sensible enough to print the form in a font size which is easily readable by all its intended subscribers. 

You may project this point to SEBI (Securities and Exchange Board of India), who should lay down the minimum size of font on such public communications. 

My wife is a housewife. Is there any need for me to buy insurance for her? I already have policy in my name? 

- Lakshmi Prasad Shastri, Dehradun

Life Insurance is required give financial protection to the dependents in case of unfortunate event of one’s death. Since your wife is not earning, there is no financial dependency of the family on her. Hence, there’s no need for her to take any life insurance. With the same logic, if the family is financially dependent on you, then you need to assess your life insurance requirement carefully and take adequate amount for necessary duration. Take care
not to take any insurance other than a term insurance plan and do not combine investment with insurance.

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Col Sanjeev Govila (retd)

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