Frequently Asked Questions

You can give up your rights shares by selling them on the secondary market (on-market renunciation) or by transferring them directly to someone else (off-market renunciation).

• On-market renunciation: This works like selling regular stocks and usually offers better prices based on market demand and supply. The settlement happens in two days (T+2).
• Off-market renunciation: Here, the price is agreed upon by both parties and can be done until the issue closes, unlike on-market renunciation which closes a few days earlier.

If you don't apply for the rights issue or give up your rights, they will expire. This means you lose the opportunity to buy the shares, which can be a financial loss.

No, customers with corporate accounts cannot apply for the rights issue online.

Renunciation of rights entitlements means giving up or selling your rights to buy shares to other investors. If you don't want to buy the shares offered, you can sell your rights either on the secondary market or directly to someone else.

The record date is set by the company to determine which shareholders are eligible to receive the rights entitlements. If you own shares on this date, you can participate in the rights issue.

Eligible shareholders get rights entitlements (REs), which allow them to buy new shares. For example, if you have 100 shares and the rights issue ratio is 1:5, you will get 20 REs (100 shares / 5 = 20 REs).

There are three ways to apply for a rights issue:

1. Online through ASBA: If your bank supports it, you can apply just like you do for an IPO.
2. Online through the RTA website: Use the Registrar and Transfer Agent's website.
3. Offline:

◦             Visit BSE India (Link: https://www.bseindia.com/publicissue.html)

◦             Download the application form.

◦             Fill out the form and submit it to a Self-Certified Syndicate Bank (SCSB) branch(WEB).