I am having reliance share in two different dmart account. I have received mail from both the broker for crediting of reliance right shares. Please confirm if I can apply 2 times with 2 different DP I’d or I can apply through one dp I’d only.
Please confirm.
@mohitmehra
This looks like a scenario of leverage trading to me.
Also, who pays the other instalment amounts, after I’ve lent out these shares after obtaining them during this window ?
Hi Mohit,
I have 19 RE in my demate account as I’m existing share holder. I went to site for online payment for right shares. There I was asked if I want additional shares. I said yes and paid for total 34 shares instead of 19.
Now will I get total 34 shares as right or only 19(Which I was eligible for?). If I get only 19 then they will refund me balance amount?
Thanks in advance,
Prashant J
Sir, I request for two clarifications.
Is it in order if we apply one application each from these demat account? (ie. total two applications)
Is applying through separate applications from different demat accounts by a same individual are considered as multiple applications?
Thanks.
The RTA will first allot 19 rights shares in full against the 19 REs you hold. The likelihood of receiving the allotment of the remaining 15 rights you’ve applied for depends upon the subscription in the issue. These additional shares will be allotted in full or part based on a lottery.
The money for any shares not allotted to you will be credited to your bank account by the RTA after the process is complete.
Let’s assume you have 100 REs in your Zerodha account and 50 REs in your other account. Later, you purchased 20 REs in your Zerodha account.
Accordingly, you’ll be able to apply for 120 rights with your Zerodha demat and 50 rights with your other demat. This won’t be considered multiple applications, since the RTA is performing the check based on demat account and folio. If you apply for 170 shares with your Zerodha demat, the RTA may only allot 120 shares out of entitlement and the rest 50 shares may or may not be allotted during a lottery.
@mohitmehra i am entitled to 8 right issue shares but the bank account already linked is not having either upi nor netbanking and even cannot be done as its an old bank account with no KYC .can i make the payment from the other bank as this bank fulfill both the criteria of single account holder and residential bank account. can i do change bank details ? If yes am i abiding all the rules of the third party regulations.
Please help me on this.
You can make payment from any bank account as long as you’re the registered account holder. The RTA performs a penny drop check to verify the account holder’s name. The third party bank account restriction just implies that you cannot use someone else’s bank account to pay for your application.
The REs can looked at as call options where the strike price is 1257. Once you apply for the rights shares by paying 25% of the amount, you’ll get partly paid shares of Reliance which would also be like a derivative of the ordinary share since the full amount will have to be paid after the company calls the unpaid value.
Technically, you remain the beneficiary for all corporate actions on shares which have been lent. So, you’ll still be liable to pay the remaining amount, otherwise the company may either charge interest or rescind your shares or both (as per their policy).
@mohitmehra
I don’t have any RIL securities on the record date, can I still purchase RIL-RE through zerodha trading platform and then buy RIL shares against the RE?
Since my bank account is not automatically mapped, I’m trying to pay through a different account. However, in spite of it being my account, I get an error “3rd party validation failed”. What could be the reason ?
Yes, you can purchase the REs till May 29th and apply before the issue closes on June 3rd.
If you’re using a bank account where you’re the registered account holder, possible reasons could include a misspelling of your name, incomplete name on record of the bank, etc. Best to confirm with the RTA.
RTAs Toll free numbers: 1800 425 8998 / 1800 345 4001
HI Mohit ,
I have rights entitlement as being a shareholder as of record date and i have also purchased further entitlements on 2 different days . Can you tell me how can i apply for the rights issue now for the aggregate quantity . How how can one check if the rights entitlement are credited to the demat accounts.?
Hi Mohit,
I have 20 REs is my Zerodha account (from reliance shares on record date) and I purchased 30 REs from market. What options i need to select while applying in rights.kfintech.com. Also can I apply for all 50 REs at one time? Please make a video so that it will be helpful to all. Thanks
The RTA is accepting only one aggregate application currently. You’ll be able to apply for the entire portion together. The RTA allows you to either select “Shareholder” or “Renouncee” category while applying. Although, you should have the option to select both, the RTA will process your application even if you just select the “Shareholder” category.
REs will be credited to your demat account on a EOD basis two days after your purchase. You’ll get a confirmation sms from CDSL when it is received. Meanwhile, you’ll see the REs marked as T1 in your holdings.
You need to apply for all 50 REs together. The RTA doesn’t have the option to apply mutliple times or modify the applications through R-WAP as of now. The RTA allows you to either select “Shareholder” or “Renouncee” category while applying. Although, you should have the option to select both, the RTA will process your application even if you just select the “Shareholder” category.
@VenuMadhav & @mohitmehra , I Have been following up with the RTA and they got back asking to try. This time instead of getting the message that I have already paid, I am getting the message I am not a renouncee even though my CDLS account has the RE in them. Any thoughts on what can be done next?
Best to reach out to the RTA. There may need to be a fix that they’ve got to put in place. We can expect the final ironing out soon since the they’ll want to implement any changes before the RE trading window closes.
We’re also constantly reporting any issues to the RTA, lead managers and the company.
Hi
I have made payment for 1 Rights Entitlements i am eligible from R-Wap.
After that on 20-May-2020 i have purchased 100 RIL-RE-BE from the market ,now they are in my demat account ,how to make application payment for this remaining 100 RIL-RE-BE.
Please assist