Extract from an article by Haigreve Khaitan of corporate law firm Khaitan & Co. in The Economic Times. Promoters may be able to assess investors' intentions from the manner of their treatment of anti-dilution rights that keep the investors' holding at a pre-agreed level. For example, if an investor holds 100 shares issued at Rs.100 per share, and the company makes a fresh round at Rs.50 per share, the investor with full anti-dilution protection would be entitled to a further 100 shares at no additional cost. If investors do not participate at the lower-price rights issue,it may indicate that they do not have a long-term plan with your company. Promoters could negotiate provisions where the investor loses its anti-dilution protection in such circumstances. Private Equity investors negotiate expensive affirmative rights and minority protection,via board control rights often not fully used when the company's business and finances are positive. Understand comple...