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Rights Issue Application Process

Rights Issue Application Process – How to Apply Online, Through ASBA, or Offline

Content:

  1. Understanding the Rights Issue Application Process
  2. Modes of Application for a Rights Issue
  3. Applying Online through ASBA
  4. Applying Offline through Physical ASBA
  5. Applying through Plain Paper
  6. Applying for Excess Shares
  7. Right Issue Application Time
  8. Right Issue Application Status
  9. Rights Issue Allotment and Credit of Shares
  10. Common Errors to Avoid While Rights Issue Apply Process

Understanding the Rights Issue Application Process

Once a company announces a rights issue, eligible shareholders can subscribe to additional shares within a specific window known as the rights issue application time.

The rights issue application process allows you to either:

  • Apply for the shares you are entitled to,
  • Apply for excess shares (if available), or
  • Renounce (sell or transfer) your Rights Entitlements (REs) to someone else.

You can make a rights issue application online through ASBA (via your bank or broker), through the Registrar’s Web Application Platform (R-WAP), or, in limited cases, through a physical rights issue application form provided by the registrar.

Modes of Application for a Rights Issue

Investors can apply for a rights issue either online or offline, depending on their convenience and access to facilities. All applications are processed through the ASBA (Application Supported by Blocked Amount) mechanism, where the application money is only blocked in your bank account and debited after shares are allotted.

Applying Online through ASBA

You can apply online either through your bank’s NetBanking portal or through a registered stockbroker’s platform.

Via NetBanking (Bank Route)

  • Log in to your ASBA-enabled bank account.
  • Look for the Rights Issue section.
  • Select the company’s rights issue.
  • Enter your DP ID, Client ID, and number of shares to apply for.
  • Confirm the details; your bank will block the required amount until allotment.

Via Broker Platform

Very few brokers offer to apply for the rights issue online.

  • Log in to your broker’s app or web portal
  • Under the Corporate Actions / Rights Issue section, choose the company.
  • Enter your entitlement details.
  • Confirm the order.
  • The connected ASBA bank account will block the funds automatically.

Note : The above process is generic and may differ slightly depending on your bank or broker’s online application platform for rights issues.

Applying Offline through Physical ASBA

For investors who prefer offline submission:

  • Download the Rights Issue Application Form from the company’s or Registrar’s website.
  • Fill in details like your name, PAN, folio number, and number of shares applied for.
  • Submit the completed form at a Self-Certified Syndicate Bank (SCSB) branch before the issue closes.
  • The bank will block the application amount in your ASBA account — cheques or demand drafts are not accepted.
  • Keep the acknowledgment slip for reference.

Applying through Plain Paper

If you are unable to obtain the standard application form, SEBI allows shareholders to apply using a plain paper application. The plain paper must include:

  • Name of the company and the applicant(s) (as per records)
  • Registered folio number / DP ID–Client ID
  • Number of shares held, entitled, and applied for
  • ASBA bank account details and authorization to block funds
  • PAN and signatures of all holders in the same order
  • Any approvals or declarations (for NRIs or special cases)

A plain paper application format is usually available for download on the Registrar’s website. It ensures investors include all mandatory details before submission to an SCSB branch.

Note that this option cannot be used for renunciation and should be considered only if the standard form is unavailable.

Applying for Excess Shares

If you want to apply for more shares than your entitlement, you can make a Right Issue Excess Application in the same form or online application.

  • The additional shares are allotted only if unsubscribed shares remain after all eligible shareholders apply.
  • There is no guarantee of allotment for the excess portion.

Right Issue Application Time

Investors can apply for a Rights Issue anytime between the opening and closing dates announced by the company. On the closing date, applications must be submitted before 5.00 p.m. (Indian Standard Time) or such extended time as permitted by the stock exchange.

Although some banks and brokers may allow flexible hours, many ASBA-enabled banks or trading platforms impose earlier internal deadlines.

To avoid last-minute rejections or payment failures, it is advisable to submit your application at least a day or two before the closing date, or well before 3–4 p.m. on the final day.

Right Issue Application Status

After the issue closes, you can check the status of your rights issue application:

  • On the Registrar’s website (using PAN, DP ID, or Application Number).
  • Through your ASBA bank or broker platform (under IPO/Corporate Actions section).
  • After allotment, check your demat account to confirm credit of new shares.

Rights Issue Allotment and Credit of Shares

Once the basis of allotment is finalized:

  • Shares are credited to your demat account under the same ISIN (or a different ISIN for partly paid shares).
  • Blocked funds are debited for allotted shares; balance funds are unblocked.
  • You receive a confirmation email or SMS from the Registrar and your depository.

Common Errors to Avoid While Rights Issue Apply Process

  • Using a non-ASBA bank account or incorrect DP ID/Client ID.
  • Submitting multiple applications for the same PAN.
  • Missing the rights issue application time window.
  • Making payments from third-party accounts.
  • Forgetting to sign or attach required details in physical forms.

Key Takeaways

  • Rights issue applications are made only through the ASBA mechanism, ensuring investor funds remain blocked until allotment.
  • You can apply online via your bank’s NetBanking portal or broker’s trading platform, or offline through physical submission at a Self-Certified Syndicate Bank (SCSB).
  • Plain paper applications are permitted only if the standard application form is unavailable, and must include all required details.
  • Cheques or demand drafts are not accepted for rights issue applications.
  • Track your application number and status through your bank, broker, or registrar’s website.
  • Always apply well before the closing date to avoid technical or banking delays.
  • The application process may look slightly different depending on your bank or broker interface, but the core steps remain the same.
  • Applying correctly ensures your entitlement is not lost and that you can fully benefit from discounted share prices.
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Frequently Asked Questions

Yes, you can apply for a rights issue online through the ASBA facility provided by your bank or stockbroker.

  • Through Bank (NetBanking): Log in to your bank’s NetBanking portal, go to the Rights Issue / ASBA section, select the company, and submit your application.
  • Through Broker Platform: Log in to your broker trading platform and look for the rights issue section to submit your application. Not many brokers offer to apply for rights issues, but you can trade the rights entitlement credited (if applicable) to your account.

Your application amount is blocked in your bank account and debited only if shares are allotted.

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The status of your rights issue application can be checked in any of the following ways:

  • Registrar’s Website: Visit the registrar’s site (e.g., KFintech, Link Intime) and select Rights Issue Application Status. Enter your PAN, DP ID–Client ID, or Application Number to view the result.
  • Through Bank or Broker: If you applied via ASBA, check your NetBanking or broker platform under Application History.
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The rights issue application number is a unique reference used to track the application and allotment status. You can find it in the following ways:

  • If Applied via Bank (ASBA): Log in to your NetBanking portal and check under IPO / Rights Issue / Application History. The application number will be shown along with your blocked amount.
  • If Applied via Broker Platform:Go to Corporate Actions → Rights Issue → Application History to view your application number. Generally, brokers do not allow applications for rights issues. They allow to buy/sell of rights entitlement through their platform.
  • If Applied Offline: The acknowledgement slip provided by the SCSB branch or registrar at the time of submission will mention your application number.
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You can apply for a rights issue either online or offline, depending on your convenience:

  • Online via ASBA (NetBanking or Broker): Log in to your bank’s NetBanking portal or your broker’s trading app (if offered). Go to the IPO / Rights Issue / ASBA section, select the company’s issue, enter your details, and confirm. The amount will be blocked in your bank account and debited only after allotment.
  • Offline via ASBA (Physical Form): Collect or download the Rights Issue Application Form from the registrar’s website or your bank branch. Fill in all details and submit it at a Self-Certified Syndicate Bank (SCSB) branch before the issue closes.
  • Plain Paper Application: If you haven’t received the application form, you can apply on plain paper using the format available on the registrar’s website. Mention your name, PAN, DP ID–Client ID, entitlement details, and number of shares.
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Yes. In addition to your entitled shares, you can apply for additional (excess) shares. When filling your rights issue application (online or offline), there’s an option to apply for excess shares beyond your entitlement.

If some shareholders don’t subscribe to their entitlements, these leftover shares are redistributed among applicants who requested extra shares—usually on a pro-rata basis.

Note: Applying for excess shares does not guarantee allotment; it depends on availability after all valid applications are processed.

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