Is rights issue a scam where promoters gain at the cost of retail investors? Is rights issue a scam where promoters gain at the cost of retail investors? Isn’t it like a Diwali bonanza or in financial terms, a Ponzi scheme?! Karan Dsij / Saturday, October 15, 2022 / Article rating: 4.0 Usually, the rights issue is offered at a discount but there is no specified limit that a company can offer a discount on its rights issue. So, here comes a big loophole!