Right issue of South Indian Bank unclear explanation from zerodha

General
1

Hi right issue from RE I’m going to get 10re.
How to apply
Go to hdfc bank and choose asba filling details apply and amount required will be blocked.
Am I suppose to keep re as it is till end or should I sell them before closure.
Does Zerodha have any option like buy back in tender where we apply for buy back under the heading of corporate action?
Or
Is there any offering under the heading of IPO in zerodha application where we can apply for right issue and it asks for amount blockage straight in bank after putting UPI pin .???
After zerodha for this query many times but they are either unable to understand or trying to fool around.very unclear answer.

2

Hi @Shiv_Chatterjee,

You have two options:

  1. Sell REs on Kite
  2. Apply for the rights shares

For selling the REs, this is exactly like you sell stocks. However, if you do not sell the REs, you need to apply for the rights to ensure the value of the REs is not wasted for you. Learn more about this here.

Unlike IPOs and corporate actions, applying for rights cannot be supported through the broker’s platform. You will need to apply through your net banking facility. For some rights issues, the bank may not enable applications online at their discretion. This can happen if the company is small or the bank expects low interest from investors. In such scenarios, you will need to approach your bank with a physical application form. You can get the form and also submit it at an SCSB Bank.

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3

@Shiv_Chatterjee Also, it’s probably best to go through this post regarding RE on South Indian Bank. Everything you need to know about The South Indian Bank Limited Rights Issue

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5

@mohitmehra your answer looks far more better than answer from zerodha.But one thing I could not understand is to sell RE and apply for right issue.This would be a double profit kind of deal😄 which is not permitted as per my opinion.
Selling RE will be a complete benifit and then getting shares in discounted rate as right .
Anyways I would try to apply through registrar and ask the same to them.thanks

6

:slight_smile: You can do one or the other, not both.