However, you can apply for 1 extra Rights, there’s preferential allotment:
1 Like
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!!!
Hi Amit,
The information we put up on this portal is based on published circulars/notifications or verbal confirmations from the intermediaries responsible. This process of applying through the RTA is a new and temporary one, made especially for the lockdown situation. It is understandable that the RTA was unable to put all possible scenarios in writing on their FAQs.
We’ve highlighted this particular scenario to the RTA so that they may undertake necessary measures. We’ll post updates as and when we find out more.
Ok, But I think you should take this as a lesson and I hope Zerodha won’t make such mistake in future and will publish only verified information.
@All retail investors/Traders: I will advise to stay away from this RIL-RE-BE and do not take any position in hurry. Things are not very clear and since this event is happening first time in market and nobody knows the next steps so if you get stuck or lost the money then you only be responsible and cannot blame further to anyone.
This is even quite confusing for experts like Zerodha and Kfintech(RTA) teams.
So make the the decision carefully.
1 Like
Please also inform me if RTA makes the provisions on website to place a second order for RIL-RE specially for RE purchased from secondary market after placing the order on RTA for allotted RE.
Once I have paid Rs. 314.25 for subscribing to the rights issue, and the right shares get credited to my demat account on June 11, 2020, will I be able to sell them immediately like normal shares?
If yes, at what price will I be able to sell them?
And once I sell them, do I still have to pay the remaining money from the issue price, i.e. Rs. 942.75 in the subsequent calls as determined by Reliance later? If I don’t have to pay, then who pays that remaining amount?
The partly paid shares will list on the Exchange after which you would be able to sell them.
Once you’ve sold the shares, you aren’t required to pay subsequent call money.
Hi, my broker has released my eligible Right Entitlements (REs) based on my pledged shares in my DP account on 21st May 2020. When I tried to apply for the rights issue through (http://rights.kfintech.com/) it is showing no records found. Can you please guide, how to go ahead?
Try selecting the ‘I am a renouncee option’ and proceed.
Hi Venu,
Thank you for your response. Since it is not practically possible to send the filled in application through normal post from abroad due to current situation, is it possible for me to sell this rights issue. How can I do that?
Regards
Nirmal
If I buy Reliance industries rights entitlement shares I am eligible to participate in rights issue. If I buy 100 ril- re shares, am I eligible for 100 rights shares or in the ratio of one rights share for every 15 ril re shares will be given?
@VenuMadhav, thanks for all the efforts and communication from your end.
I am stuck in a similar situation where I had already paid for my entitled shares then bought further rights over the exchange. I will continue to hold this position with the hope that Kfintech will be able to provide another way to apply and pay through the ASBA method for the additional rights I purchased.
I have also written to them and will let everyone here know what they say. I think it would make sense if we all come together and work with you and your team @VenuMadhav to keep following up with them for a solution.
Let us know how we can collaborate on this! Thank you!
Br,
Adhyayan
@Subramanian_S if you are eligible for 100 shares as you pay for them over the duration of this and next year.
Hey, the Rights issue was to be modeled along the lines of ASBA IPO that allows an investor to modify bids. Looks like the RTA messed up, @mohitmehra has been in continuous touch with Karvy asking them to allow modifications to the bids placed, we’ll update here. If nothing comes through, you’ll have no option but to sell the REs on the secondary market
@VenuMadhav wondering why brokers like you letting them get away with it. Can’t someone sue them for inconveniences they are causing to investors. What are regulators doing for this.
Hi Prakhar,
The market intermediaries involved in the rights process will not deny that investors have been inconvenienced. However, we also should take into account the circumstances during which this non-ASBA process has been created. (SEBI had issued the circular allowing the process on May 6th and the RTA had less than 10 working days to build their systems and take it live for the issue opening on May 20th)
During the lockdown since many investors would not be in a position to go-to their banks and deposit the rights ASBA form, it was crucial to have a process where investors could apply online even if their bank doesn’t support NetBanking ASBA for rights issues.
This is a temporary process which has been put in place with little time to test and explore possible application scenarios. We have been prompt in sending inputs to the RTA and lead managers to the issue so that, wherever possible, the process can be improved while the issue is live.
Sir, In the FAQs of R-WAP of rights.kfintech site (link given below) only 30 bank names were given for Net banking. In that list Federal Bank name is not there. As many are buying entitlements from the market, it is diffiult for many who have bank account with other banks to apply for the entitlements.
Please take up the issue.
https://rights.kfintech.com/rwapfaq.aspx