Well though I received muthoot capital service rights issue letter and applying for same.

Today I also received a letter from a broker which states spot payment against rights renunciation forms.

I wanted to know how does this broker's profit work.

Suppose I am not at all interested in applying for rights then if I forward my application letter to them will they get same preference like the shares which I will be getting plus extra shares which weren't applied by anyone?Also what spot payment will they pay me saying rights is on 80 rs and share trading at say 92.

Also since I clearly see that muthoot capital shared my details with this broker hence I got this letter can I get details about people who are still holding physical form shares of some other companies?

The "spot payment" must be Rs 12 per share or slightly less than that.

The nature of the "rights" doesn't change when they are transferred.

The broker will get the same number of shares as you would have got if you had applied.

I don't think Muthoot Capital shared your details. Someone else must have given this information to the broker e.g. your broker or DP or the registrar. Unless you have the right contacts, you won't get such information.

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I doubt my DP HDFC too be involved in such practice. But yes i have less trust on the registrar karvy.

I asked about physical shares because i am sure people who might have passed away might be holding those shares in physical form and there present generation might not be aware of working of stock market hence they never dematerialized it. Hence if i know a said family owns 100 shares of say dcb i can buy directly from them at 50 rs per share rather than from market at 60. And i don't think they'll have problem in selling at those levels as dematerialize shares is not easy option for a newbie.

I know such market also exists but yes it's tough to get the details unless you bribe somewhere down the tree.