Thanks Venu. That should work. Had an off-topic follow-up to this.
So technically, the broker has ownership of pledged shares? How do the regulators ensure this is not taken advantage of?
The ownership still lies with the client, the shares are held in the Broker’s account but yeah, I get your point. To address this issue, SEBI has proposed a change in the way the clients pledge stocks for margins. From June 01 (unless the implementation is postponed), stocks will continue to lie in the client’s account, a pledge will be marked in favor of the broker. Here’s the relevant SEBI circular
An extract from the circular explaining:
Thanks Venu!
@VenuMadhav waiting for the update… kindly guide as i have known few friends fa ing similar issue… we are not able to edit the previous application also, so much confusion and our money is also stuck in RIL RE trades…
Hi Mohit,
We reached out to the RTA to check how can clients modify their applications through the R-WAP. The process was modelled on NetBanking ASBA. However, the RTA seems to not be allowing modifications to the application. They’ve also restricted the number of applications per demat account to one (in line with SEBI’s directives).
An investor will be able to place another application for a different demat account. However, additional REs that you may have purchased will need to be sold to avoid losses from the REs lapsing. You may write to RTA and check if they have an alternate available for such cases. We’re also continuously following up so that investors don’t have to face undue trouble.
@VenuMadhav @mohitmehra Pls clear my queries.
I don’t have RIL shared but I purchased RIL rights entitlement in my demat. I am applying through R-WAP route. While applying,
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I am selecting ‘I am renouncee and hold rights entitlement in valid demat account’ and it automatically selects ‘I am holding the shares in Dematerialised Form’. Is this correct ?
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It asks to Enter DPID Client ID. In zerodha console, my depository is CDSL and I have a 16- digit Demat account ID for IPO application. should I need to enter this ?
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Yes
Yes
You piece of shit why have you been misguiding everyone? Its WRONG. It doesn’t work. I did what you said and you robbed me of an opportunity to buy RE from secondary market. When applying the second time, the portal says, “Payment already made”
Hi Venu/Mohit - I have one query. I sold my 14 shares on ex-Right date i.e. 13th May hoping that settlement will happen on T+2 day i.e. 15th May but these sold shares were not considered for the right calculation. May I know why?
He has been telling everyone to apply twice for Reliance rights issue. Once separately for issued RE, and then apply again as a renouncee for shares bought from secondary market. However when I applied the second time, portal says “payment already made”.
Please kick and report this idiot for lying from a place of authority, I trusted him coz of the admin sign by his name. I am so pissed. I’ll have to sell the RE i bought from secondary market.
@mohitmehra I had pledged reliance shares. I got 13 RIL-RE shares in my holding. When I was applying for rights issue on https://rights.kfintech.com I selected renouncee option. After entering my DP Id and other details it says Holding as on Record Date - 0, No.of shares Entitled - 0.
How do I subscribe for those 13 shares?
I’ve nothing to gain by maligning you. I don’t know when the update was posted. I simply read your original post, thanked you for it, and took action on it, believing you coz of your moderator status.
Shame on you for casually spreading lies and taking things lightly.
Be responsible in future.
While the settlement does happen on T+2, brokers debit stock on T+1 since the Exchange payin happens on T+2 morning 10 am. If the shares were in the broker pool account on the record date, then the broker would receive the REs and the broker would either:
(1) credit REs to the tune of the quantities sold by you and received by broker (in the same ratio of the RE allotment)
(2) If you had lesser quantities then, the REs would be sold and the credit to the tune of the fractional units would be given to your trading ledger.
@VenuMadhav I was having 1 extra share in my account hence adding 14 sold shares to that extra share would have made my shares to be 15. But I didn’t get 1 RE for the same. Can you please help me in checking this? If required, I can share my DP ID with you.
As I said, if there’s 1 share in your account and 14 shares in the Broker’s account, that doesn’t count for 1 RE. The shares will have to be in your own demat account on record date for you to be eligible for the RE.
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Oh I see. Understood. Good information for future scenarios. Thanks for your help 
Have asked my colleague to call you and help.
Zerodha guys, you misguided your customer on this topic to purchase the RE from secondary market. This is too bad. If you do not have knowledge on a topic, you should not advise. This reflects you level of market knowledge and expertise.
People cannot purchase twice from RTA due to validation on RTA side. Customers lost the opportunity to buy RE at lower price from secondary market if they already sent the purchase request for received RE as a result of current RIL share holding.
Now either you are not replying to such queries or ignoring it and also getting aside from this issue in the light of RTA/SBI rules.
Too Bad!!!