Applying for a Rights Issue via ASBA (Bank Process Guide)

Learn how to apply for a Rights Issue through major banks using ASBA. Step-by-step guides for HDFC, SBI, ICICI, Axis, Kotak, PNB, and YES Bank with tips for a smooth application.

Investors can conveniently apply for rights issues online using the ASBA (Application Supported by Blocked Amount) facility through their Net Banking accounts. This mode allows the application amount to remain blocked in your bank account until shares are allotted — no manual submission or cheque is needed.

Note: Rights issue applications are processed through banks using the ASBA facility. While stockbrokers facilitate the trading of Rights Entitlements (REs), the actual application for rights shares is submitted through your bank’s NetBanking or offline ASBA process.

Below are step-by-step guides for popular banks that offer online ASBA services for rights issue applications:

Rights Issue Through HDFC Bank

HDFC Bank allows investors to conveniently apply for a rights issue through its NetBanking portal under the ASBA facility. Follow these steps:

1. Log in to HDFC Net Banking: Go to the HDFC Net Banking page. Enter your Customer ID/User ID and Password/IPIN to log in.

2. Navigate to the IPO/Rights Issue Section: On the dashboard, scroll to the ‘Request’ tab (bottom-left corner). From the drop-down menu, select ‘IPO/Rights Issue – New’.

3. Proceed to Application: Click on Continue, then enter your Account Number, Name, and PAN, and click Continue again.

4. Select the Rights Issue Option: Choose ‘I want to apply for Rights Issue/Call Money’s

5. Choose the Company: Browse the list of available rights issues, select the one you wish to apply for, and click Apply.

6. Enter Application Details: Provide your Name, PAN, DP ID, and the number of shares you want to apply for.

7. Confirm and Submit: Review all details carefully and click Proceed. Your funds will be blocked under ASBA, and you’ll receive a unique Application Number and Transaction Reference.

8. Save Confirmation: Download or print the confirmation PDF for your records. You can later track the application status under “IPO/Rights Issue Application History.

Rights Issue Through SBI Net Banking

Investors who hold a savings account with State Bank of India (SBI) and have ASBA enabled can apply for a rights issue directly through SBI Net Banking. The process is simple, secure, and ensures funds are only blocked until allotment.

Steps to Apply through SBI Net Banking:

1. Log in to your SBI Net Banking account.

2. Click on e-Services from the top menu.

3. Select ASBA Services from the dropdown.

4. Under ASBA, choose IPO (Equity/Rights)

5. Click on the Apply IPO tab, then Accept the terms.

6. A list of ongoing IPOs and Rights Issues will appear. Select your desired rights issue and click Go.

7. Confirm your details and submit the application

8. The details will auto-fill — enter the quantity and price, then click Submit.

9. The application amount will be blocked in your SBI account until allotment.

10. Upon successful allotment, the amount will be debited, and shares will be credited to your linked Demat account.

Ensure your Demat account is correctly linked with your SBI account to avoid rejection or delays.

Rights Issue Through ICICI Bank

ICICI Bank allows investors to apply for a Rights Issue seamlessly through its ASBA facility. The process ensures your funds remain blocked until shares are allotted, providing both convenience and security.

Steps to Apply:

  1. Log in to your ICICI Bank NetBanking account.
  2. Navigate to the ‘Investments & Insurance’ section.
  3. Click on ‘Invest Online’.
  4. Select ‘Online IPO, Rights Issues & Call Money’.
  5. Click on ‘Invest Online’ and select ‘Rights Issue’ and proceed.
  6. Validate your details and enter the number of rights issues you have.
  7. Accept the terms and proceed.
  8. Choose the desired Rights Issue from the available list.
  9. Enter your bid details, PAN, and DP ID–Client ID and submit.
  10. Submit your application.

Once successfully submitted, the funds will be blocked, and you will receive an acknowledgement number. You can later check your application status through ICICI Net Banking under the Order Book section.

Rights Issue Through Axis Bank

Axis Bank provides an easy and secure way to apply for Rights Issues through its Net Banking portal or Mobile App using the ASBA facility. 

Steps to Apply:

1. Log in to your Axis Bank Net Banking account or Mobile App using your credentials.

2. Go to the ’Investment’ section and select ‘Online IPO / Rights Issues’ from the dropdown.

3. Click on ‘Apply for Equity IPO / Rights Issues’.

4. Select ‘View IPO Details’ to check the available Rights Issue.

5. Review the issue details and click ‘Initiate Payment’.

6. Choose your account and investor category, then click Proceed.

7. Enter your bid details (number of shares, price, etc.) and click “Proceed.”

8. Enter the OTP received and confirm your order.

9. Your funds will be blocked in the account until allotment.

After allotment, the amount will be debited automatically, and shares will be credited to your Demat account.

Rights Issue Through Kotak Bank

Kotak Mahindra Bank enables investors to apply for Rights Issues online through its Net Banking portal under the ASBA (Application Supported by Blocked Amount) facility.

Steps to Apply:

1. Log in to your Kotak Mahindra Bank NetBanking account.

2. Go to the ASBA tab.

3. If you are applying for the first time, complete a one-time registration by entering your Demat Account details (DP ID and Client ID).

4. Click on Next, validate the details and click on Confirm & Submit.

5. Click on ‘Apply Now’ under Transaction tab and select the beneficiary.

6. From the list of available company names, select the Rights Issue you wish to apply for. Select the investor category and click on Next.

7. Enter the bid details and click on Next.

8. Review the entered details and submit the application.

Once submitted, the application number gets displayed up on the screen. The required amount will be blocked in your account and debited only upon allotment.

Rights Issue Through Yes Bank

Yes Bank offers a simple way to apply for Rights Issues online through its Net Banking platform under the ASBA facility, which blocks your application amount until allotment.

Steps to Apply:

1. Log in to your YES Bank NetBanking account using your Login ID and Password.

2. In the search bar, type ‘E-IPO Details or ASBA’ and click on it.

3. A SEBI guidelines dialogue box will appear — click ‘OK’ to proceed.

4. You will be redirected to a page displaying all current IPOs and Rights Issues.

5. Select the Rights Issue you want to apply for. Click ‘Apply Now’ or ‘View Prospectus’ if you wish to review details first.

6. When prompted, click ‘Register Applicant’. (for first time users)

7. Enter your Depository Name, Nickname, and DEMAT Account Number, then click Next.

8. Review and confirm your details.

9. Complete verification by entering the OTP sent to your registered mobile number.

10. Navigate to the ‘Apply for IPO Now’ section to proceed with the rights issue application.

11. On the next screen, fill in Company Name and Investor Category, then click Next.

12. Enter the number of shares you wish to apply for and click Next.

13. Complete verification by entering the OTP sent to your registered mobile number.

14. Upon confirmation, your funds will be blocked, and you’ll see a message confirming a successful Rights Issue application.

After allotment, the amount will be debited, and the shares will be credited directly to your Demat account.

Rights Issue Through PNB Bank

You can apply for a rights issue through Punjab National Bank (PNB) using the ASBA facility. The process can be completed online via PNB NetBanking or through the PNB One Mobile App.

Steps:

1. Log in to your PNB NetBanking account and go to the Investments tab.

2. Click on ‘Apply for ASBA’ under the Trading / ASBA section.

3. Select your Investor Category and Type, then click Continue.

4. A list of ongoing public issues will appear — select the Rights Issue you wish to apply for.

5. Enter your Depository details (DP ID and Client ID), bid quantity, and account number, then click Continue.

Key Takeaways

  • Applying for a rights issue through banks using ASBA is the most convenient, secure, and SEBI-approved method.
  • The process ensures that your funds remain blocked (not debited) until shares are allotted, protecting investors from unnecessary risk.
  • While the exact steps may differ slightly across banks, the overall process remains the same — select the issue, enter Demat details, confirm, and block funds.
  • Investors should always double-check application details like DP ID, Client ID, and quantity before final submission.
  • Applications must be completed before the issue closing date, as late submissions are not accepted.
  • Stockbrokers play a role only in trading Rights Entitlements (REs); rights issue applications themselves are routed through bank ASBA systems.

While rights issue applications are submitted through banks, investors often interact with their stockbrokers for trading Rights Entitlements (REs). The next chapter explains how RE trading works and how investors can decide whether to apply, buy more, or sell their entitlements.

Frequently Asked Questions

You can apply for a rights issue through your bank’s Net Banking portal using the ASBA facility.

Steps:

  • Log in to your bank’s Net Banking account.
  • Go to the IPO / Rights Issue / ASBA section (usually under ‘Investments’ or ‘e-Services’).
  • Select the company’s rights issue from the available list.
  • Enter your Demat Account details (DP ID and Client ID), PAN, and the number of shares you wish to apply for.
  • Confirm and submit your application.
  • The application amount will be blocked in your account until allotment.

You’ll receive an application number or confirmation message after submission. Funds are debited only if shares are allotted, and allotment details are later reflected in your Demat account.

Yes, you can apply for a rights issue provided you acquire Rights Entitlements (REs) during the trading period in case of a renounceable rights issue.

Even if you are not a shareholder on the record date, you can become eligible by buying REs from existing shareholders on the stock exchange. Once the REs are credited to your demat account, you can use them to apply for the rights shares within the issue period.

You can apply for a rights issue online through HDFC Bank Net Banking using the ASBA facility.

Steps:

  1. Log in to your HDFC Net Banking account using your Customer ID/User ID and Password/IPIN.
  2. Go to the ‘Request’ tab → select ‘IPO/Rights Issue – New’.
  3. Click Continue, enter your Account Number, Name, and PAN, then click Continue again.
  4. Choose ‘I want to apply for Rights Issue/Call Money’.
  5. Select the company from the list and click Apply.
  6. Enter your PAN, DP ID, and number of shares, then click Proceed.
  7. Confirm the details — funds will be blocked under ASBA, and you’ll get an Application Number.
  8. Save or print the confirmation for your records.

For step-by-step instructions with screenshots, refer Rights Issue Through HDFC Bank.

You can apply for a rights issue online through Axis Bank Net Banking or the Axis Mobile App using the ASBA facility.

Steps:

  1. Log in to your Axis Bank account (web or mobile app).
  2. Go to Investments → Online IPO/Rights Issues.
  3. Click Apply for Equity IPO/Rights Issue.
  4. Select the Rights Issue you want to apply for and click View/Initiate Payment.
  5. Choose your account and investor category, then click Proceed.
  6. Enter the number of shares you wish to apply for and click Proceed.
  7. Enter the OTP received on your mobile to confirm.
  8. Once submitted, funds are blocked under ASBA and debited only after allotment.

For step-by-step instructions with screenshots, refer Rights Issue Through Axis Bank.

You can apply for a rights issue easily through ICICI Bank Net Banking under the ASBA facility.

Steps:

  1. Log in to your ICICI Bank Net Banking account.
  2. Go to Investments & Insurance → Invest Online.
  3. Select Online IPO, Rights Issues & Call Money.
  4. Choose your preferred Rights Issue from the available list.
  5. Enter your bid details, PAN, and DP ID–Client ID.
  6. Review and confirm your application.
  7. Funds will be blocked under ASBA and debited only upon allotment.

For step-by-step instructions with screenshots, refer Rights Issue Through ICICI Bank.

You can apply for a rights issue through SBI Net Banking using the ASBA facility, which securely blocks funds until allotment.

Steps:

  1. Log in to your SBI Net Banking account.
  2. Click on e-Services from the top menu.
  3. Select ASBA Services from the dropdown.
  4. Under ASBA, choose IPO (Equity/Rights).
  5. Click Apply IPO, then accept the terms and conditions.
  6. A list of ongoing IPOs and Rights Issues will appear — select your desired rights issue and click Go.
  7. Click Accept again to proceed.
  8. Choose your Category and select Shareholder/Renounce.
  9. Confirm your details, enter the quantity and price, and click Submit.

The application amount will be blocked in your SBI account until allotment. Upon allotment, the amount will be debited, and shares will be credited to your Demat account.

For step-by-step instructions with screenshots, refer Rights Issue Through SBI Net Banking.

You can apply for a rights issue online through Kotak Mahindra Bank Net Banking using the ASBA facility.

Steps to follow to apply rights issue in Kotak Bank:

  1. Log in to your Kotak Mahindra Bank Net Banking account.
  2. Go to the ASBA tab.
  3. If applying for the first time, complete a one-time registration by entering your Demat Account details (DP ID and Client ID).
  4. Click Next, validate the details, and select Confirm & Submit.
  5. Under the Transaction tab, click Apply Now and select the beneficiary.
  6. From the list of available companies, choose the Rights Issue you wish to apply for.
  7. Select your investor category and click Next.
  8. Enter your bid details (number of shares, price, etc.) and click Next.
  9. Review the entered details carefully and submit the application.

Once submitted, an application number will be displayed on the screen. The application amount will be blocked in your Kotak Bank account and debited only after allotment.

The stock brokers generally do not allow you to apply for rights issues online.

Rights issue applications are submitted through banks using the ASBA facility. Stockbrokers primarily facilitate the buying and selling of Rights Entitlements (REs). Even if your broker displays rights issue information, the actual application and fund blocking happen through your bank.

Rights Issue Through PNB Bank

You can apply for a rights issue through Punjab National Bank (PNB) using the ASBA facility. The process can be completed online via PNB NetBanking or through the PNB One Mobile App.

Steps:

  1. Log in to your PNB NetBanking account and go to the Investments tab.
  2. Click on ‘Apply for ASBA’ under the Trading / ASBA section.
  3. Select your Investor Category and Type, then click Continue.
  4. A list of ongoing public issues will appear — select the Rights Issue you wish to apply for.
  5. Enter your Depository details (DP ID and Client ID), bid quantity, and account number, then click Continue.

The application amount will be blocked in your account and debited only upon allotment.