What is Rights Issue & Rights Entitlement? How to Apply & Sell Rights Issue Shares?

A rights issue is a corporate action where an offer is made by a company to its existing shareholders to buy new shares in the company. The number of new shares offered is usually proportional to the number of existing shares held by the shareholder. The price at which the new shares can be purchased is usually at a discount to the current market price of the shares.
In order to apply for these rights issues, shareholders need to have Rights entitlement. By Rights entitlement we mean a temporary demat security that represents the shareholder's eligibility to apply for the rights issue. Rights entitlements are offered to shareholders as a ratio to the number of securities held on the record date.
In this video, we discuss in detail the process to apply and sell rights issue in Hindi.
Time Stamps
00:00 Introduction
00:50 What is the Rights Issue?
01:27 What is a Record Date?
02:32 Why does the company issue rights?
03:30 What is Rights Entitlement?
04:58 How to apply for a Rights Issue?
05:53 Who is eligible for the Rights Issue?
06:36 Why to sell Rights Entitlement?
06:53 Advantages of selling Rights Entitlements
08:32 Should you apply for RE or sell RE?
09:16 How to sell Rights Entitlements?
09:50 Taxability on selling RE
10:56 How is portfolio value impacted?
13:15 Other important dates
13:50 Conclusion
Links to Refer
Learn more about the stock market here: zerodha.com/varsity/modules/
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Пікірлер: 217

  • @NiVi432
    @NiVi4328 ай бұрын

    Love how crisp and clear the infp is. Bang on, to the point! Thanks a lot Zerodha for the series

  • @sureshgs740
    @sureshgs74011 ай бұрын

    Crisp presentation Ma'am. Thank you.

  • @AjaySingh-hr8yq
    @AjaySingh-hr8yq5 ай бұрын

    Well explained!!! thank you

  • @amoln5497
    @amoln54975 ай бұрын

    Very well explained, thanks 🙏🏻

  • @Shorts4Urs
    @Shorts4Urs5 ай бұрын

    Excellent explanations. Thanks

  • @harjeetkhurana964
    @harjeetkhurana96411 ай бұрын

    Nice piece of information nicely explained… Excellent presentation..

  • @akashsi
    @akashsi5 ай бұрын

    Was so much confused after indiabulls housing rights issue. This video explained everything 🎉

  • @ajaychouhdhary4437

    @ajaychouhdhary4437

    5 ай бұрын

    Same

  • @OPTIONandSWINGTRADER

    @OPTIONandSWINGTRADER

    5 ай бұрын

    So tell me if makes sense to sell or buy the India bulls rights I'm still confused 😄 currently the markets price of the rights are 45 Rs.

  • @ujwalthakare1129

    @ujwalthakare1129

    5 ай бұрын

    same here. which value should be greater than entitlement @@OPTIONandSWINGTRADER

  • @TylerDurdenVibes

    @TylerDurdenVibes

    5 ай бұрын

    you are not alone :P though I am still wondering if I should buy or sell

  • @TylerDurdenVibes

    @TylerDurdenVibes

    5 ай бұрын

    here listing price > RE

  • @GudduYadav-hz6gy
    @GudduYadav-hz6gy11 ай бұрын

    Thank you so much madam hindi me hi video banaye apke channel ki video bahut hi knowledgeable hoti hai

  • @ristondsouza8548
    @ristondsouza854811 ай бұрын

    Useful 💯 Thank you

  • @mangeshwaghambare
    @mangeshwaghambare4 ай бұрын

    Very well knowledgeable & informative video... Very good information

  • @osmreview
    @osmreview11 ай бұрын

    Lots of respect for Mam plzz zerodha keep this serious up ❤

  • @bikendersingh4413
    @bikendersingh44132 ай бұрын

    Woow great way to teach RE nd all...thank u😊

  • @arche6188
    @arche618810 ай бұрын

    Hello, thanks for the great content you make on varsity. I would love to see a video explaining about partly paid up shares, like Airtel pp e1 that happened in 2021. Like why they exist in such a way , dividend structure etc. Thank you.

  • @akshayojha3666
    @akshayojha36666 ай бұрын

    👍 Very good explanation thank for informative video

  • @surajdarekar8929
    @surajdarekar89295 ай бұрын

    Very informative!!!

  • @anilmm2005
    @anilmm200511 ай бұрын

    Excellent information

  • @omprakashboda2734
    @omprakashboda27345 ай бұрын

    Thanks for providing the Knowledge on Rights Issue.. One Question.... Balance amount of Right issue , when to be paid .... And how they intimate us for balance payment. Please clarify....🙏

  • @satishb700
    @satishb7003 ай бұрын

    Bahuth accha samajata mam thanks mam

  • @gobaraGanesh
    @gobaraGanesh4 ай бұрын

    Thanks for explaining in Hindi

  • @rajeshsamant4884
    @rajeshsamant488411 ай бұрын

    Very helpful as Orient Green Power will open on Monday. Assuming tomorrow closing price for Orient is 14 and RI price is fixed at 10. So my RI sell price will be 4 on Monday or 10. Please guide .

  • @utkarshsharma9965
    @utkarshsharma99654 ай бұрын

    @09:01 What is the listing price? Is it the price when the stock was listed?

  • @jayprakashmaurya9079

    @jayprakashmaurya9079

    2 ай бұрын

    Same i don't understand

  • @Vishalkumar-hv7vs

    @Vishalkumar-hv7vs

    7 күн бұрын

    Bhaii pta ho to bta do

  • @arupdeb9663
    @arupdeb96635 ай бұрын

    Hat's off to you Ma'am, very impressed by your way of explaning. One doubt I have, What market price should we consider, price at the time of rights entitlement or the price at the time of record date.

  • @jayeshparmar1554
    @jayeshparmar155411 ай бұрын

    Nicely explain ❤

  • @kamalchakraborti1353
    @kamalchakraborti13535 ай бұрын

    if anyone applies for all his RE share will he get same amount of new shares or it'll be based on lottery?

  • @alokverma1792
    @alokverma179210 ай бұрын

    Please cover corporate actions like Bonus, Split etc. How a fresh issue is adjusted in the companies account. Does it dilute the shareholder's equity?

  • @nikhilgala25
    @nikhilgala253 ай бұрын

    amazing content, animations . amazing learning !

  • @sharpshooteryt8966
    @sharpshooteryt8966Ай бұрын

    Ek sawal aagar mere pass kisi stock pahle se hi share h aor ab usmai exercise hone wali hai to kya mujhmein per bhi right issue lagu hoga

  • @AdityaSharma-ol4vy
    @AdityaSharma-ol4vy6 ай бұрын

    Amazing ❤

  • @melvinselvaraj
    @melvinselvaraj4 ай бұрын

    Thank you ❤

  • @tjtj2919
    @tjtj29194 ай бұрын

    I saw today n subscribed thanks a tons 👍

  • @FoxbatFury
    @FoxbatFury3 ай бұрын

    Best video on this topic

  • @suvradattajena3376
    @suvradattajena33769 ай бұрын

    From investment yadna to zerodha good progress mam😊

  • @satyapriyaashish9656
    @satyapriyaashish96565 ай бұрын

    what to do with Indiabulls finance right issue? Should we sell it or apply for it?

  • @HarikiranBaratam
    @HarikiranBaratam3 ай бұрын

    Thank you madam. 🙏

  • @gobaraGanesh
    @gobaraGanesh7 ай бұрын

    Thanks

  • @Stockbazzaar
    @Stockbazzaar3 ай бұрын

    What if I buy more re shares from open market then can I apply for more shares at right issue price than my actual entitlement?

  • @pankajgoyal5703
    @pankajgoyal57036 ай бұрын

    Nice info

  • @varunvvp7919
    @varunvvp79195 ай бұрын

    What will happen if a non share holder bought RE and he doesn't sell those? will it come to his holdings and at what price??

  • @rahulshetty1625
    @rahulshetty16253 ай бұрын

    But how to apply for RE? Is it supposed to be done on kite?

  • @harry5667
    @harry56676 ай бұрын

    Can you create a video where we can sell or buy shares using zerodha portal?? I am still confused, if we want to sell rights issue shares . Do we need to apply on ABSA bank portal? Or just demat account sell would be enough.

  • @Rakeshshanmugamexplores
    @Rakeshshanmugamexplores5 ай бұрын

    Could you please share how to apply for the rights issue from zerodha step by step with example, like how you showed it for selling of Rights issue

  • @kg3217
    @kg32173 ай бұрын

    Kaafi achhe se explained tha. Thanks !

  • @jayprakashmaurya9079

    @jayprakashmaurya9079

    2 ай бұрын

    Aree bhai but listing price pta kaise chle ga ?

  • @mukeshchoby
    @mukeshchoby3 ай бұрын

    mam agar right issue ke share purchase kar liya kya long term rakh sakte h

  • @varshasinha4184
    @varshasinha41845 ай бұрын

    If u sell it and then rebuy it within the same time frame..my genpharma re now is at an investment of 4500..and i dont know wt to do..i rebought it by mistake at its max price 2.66😢

  • @rupeshr8339
    @rupeshr83393 ай бұрын

    Can you please tell me, If i am not shareholder of company, supposed i buy Re Share from open market 100 qty at the same time apply for 100 Qty form ASBA then i can get all 100 Qty or not ? (Chances of allotment in %) I just want to know is this risk to do this bcz RE share will not appear after RE period over, if no allotment money use to buy RE will be not refunded? Am i correct?

  • @YashikaKoshti
    @YashikaKoshti11 ай бұрын

    But how can sell before buy

  • @dipakangayte7529
    @dipakangayte75295 ай бұрын

    I have 1500 share of ibull then what happened when im not applied for right issu. My holding is remaining as its or what. Plz reply mam plz.

  • @hanurao8078
    @hanurao80786 ай бұрын

    It's very good video.plz do video on warrants and buyback of share

  • @gokulanandaadhikari8680
    @gokulanandaadhikari86805 ай бұрын

    What if the rights are not allotted to me? Do I lose the value of my RE?

  • @AmitGuptaGwl
    @AmitGuptaGwl4 ай бұрын

    Though it is good explanation. But it was not mentioned how to buy or sell. What options we have on Zerodha UI to do this

  • @kunalbhojwani9021
    @kunalbhojwani9021Күн бұрын

    Please attach any blog for how to apply if you are nonshare holder. And how to do that

  • @kishorkurle2431
    @kishorkurle24317 ай бұрын

    How to apply from zerodha for sepc stock ?

  • @vidhatelakhan2618
    @vidhatelakhan26184 ай бұрын

    If no net banking then how to apply for right issue

  • @jameelahmed9977
    @jameelahmed99779 күн бұрын

    Mam,I have purchased SARTELE shares 2000 at 296, I'm in loss now, should I apply for rights issue or not? What about those Rights share which are visible in my portfolio? Ur guidance is important....thank you very much, waiting for your reply

  • @bintu8989
    @bintu898911 ай бұрын

    What is EMA? How to Use Exponential Moving Average With Formula how to excel in excel please make a detailed video mam ji

  • @roshin4u
    @roshin4u5 ай бұрын

    12.48minutes calculation screen equation on Cell D is not clear, how the value 9 ( A*9) appear

  • @ganeshbharati2310
    @ganeshbharati23105 ай бұрын

    thanks madam. please make one full video about of iceburge order.

  • @tradenowornever2858
    @tradenowornever28587 ай бұрын

    Procedure to apply RE???

  • @imamshaikh7086
    @imamshaikh70865 ай бұрын

    I have an Orient Green Power shares. And, they are coming with Rights Issue soon. If, I create a ticket on Zerodha about my all details then can a Zerodha advice me or answer me regarding the sell or apply for the Rights Issue of my share i.e. Orient Green Power? Please, reply. I am a Zerodha Kite user.

  • @MILINb3E
    @MILINb3E2 ай бұрын

    Due to english subtitles, important calculations are not visible. It's good narration.

  • @sheikhfarzyn1283
    @sheikhfarzyn12837 ай бұрын

    Hi, Thanks for creating this content. Can you please help me understand the reasoning behind this> LP>RE then Sell; LP

  • @sheikhfarzyn1283

    @sheikhfarzyn1283

    7 ай бұрын

    Listing price mentioned here is for what time frame?

  • @pragashr2611

    @pragashr2611

    6 ай бұрын

    What is the listing price? Is it same as the issue price of rights?

  • @kuoshsethh452

    @kuoshsethh452

    5 ай бұрын

    What is the listing price ? Confused

  • @jayprakashmaurya9079

    @jayprakashmaurya9079

    2 ай бұрын

    Same guys even I am not able to understand what is listening price

  • @dgdatta
    @dgdatta15 күн бұрын

    How many days after allotment motivation comes in the bank , allotted right shares are credited in Demat account ? Thanks for very informative video

  • @akshayverma5589
    @akshayverma55894 ай бұрын

    I have already applied for south indian bank, but currently not viewing in holding.

  • @deboprasadbiswas1987
    @deboprasadbiswas19873 ай бұрын

    Madam, agar hum right issue se mile hua share sell kar denge to fhir humare portfolio me add kaise hoga??

  • @ranirjn
    @ranirjn6 күн бұрын

    plz tell me about re of inventure growth and securities

  • @user-lv2yw9jl9p
    @user-lv2yw9jl9p4 ай бұрын

    Re ke share holdig me kab aate hai please Ripley

  • @HarryKrishna0410
    @HarryKrishna04102 ай бұрын

    One question I am not getting an answer for, is that if a rights entitled person (who applied and bought RE shares) sells them, who buys them and why. If somebody buys these RE shares, it must be for some profit speculation. So it will be better to hold these shares.

  • @bhairuprakashsharma6557
    @bhairuprakashsharma65575 ай бұрын

    Maine ibull में अप्लाई नही किया है तो मेरा अब क्या होगा?

  • @dileepkumarkatiyar9118
    @dileepkumarkatiyar91182 ай бұрын

    Agar right issues ko buy kar liya to kya hoga. Pls comment

  • @nayanmoradiya2858
    @nayanmoradiya28583 ай бұрын

    Right issue add hokar price avrge ho jata he ne??

  • @bibhasnandi88
    @bibhasnandi885 ай бұрын

    Please this type of vedio send regarding Ibull housing finance which will be more helpful for new subscribers and likers. Thanks.

  • @arijitmallick7058
    @arijitmallick705811 ай бұрын

    Pls make videos on commodity ,currency and govt securities by zerodha module---where no video has been made so far

  • @pramodchavan7197
    @pramodchavan71974 ай бұрын

    sir me options sell che traed denar , tumhi ghenar ka/😉

  • @GAURAVRUSTAGI007
    @GAURAVRUSTAGI007Ай бұрын

    If I sell original shares and apply for right issue.. is it good idea? OR if I do not receive allotment then ? I will lose my money for which i have paid during the application. I have to paid i/3 of payment. Solara Active pharma

  • @mohitbajaj6532
    @mohitbajaj65325 ай бұрын

    Sell karne k liye money kidr hona chahiye demat account pr ? Plss reply

  • @user-or1td9tr4r
    @user-or1td9tr4r3 ай бұрын

    What happens if right issue under subscribed.

  • @ronidas4180
    @ronidas41805 ай бұрын

    Confusion about Indiabull housing finance right issue Holding qty 70 @218 Current price 189 What to do madam Apply or sell

  • @ganeshmapari438
    @ganeshmapari4385 ай бұрын

    RE of IBHF is reflecting in my demat I purchased that by paying Rs 48 per share and that amountis debited from account. Tell me is it the correct step to buy RE or I mistaken.

  • @virendratatuskar3903

    @virendratatuskar3903

    5 ай бұрын

    No your in loss

  • @spiritualsystems
    @spiritualsystems5 ай бұрын

    Informative but I still dont know how to proceed to sell or buy

  • @amitrana8563
    @amitrana85635 ай бұрын

    first of all, this is the most effective video i found when comes to the right issue. I have few doubt can some help pls ? i hold 810 stocks of indiabulls, now one 8th i applied for RE stockers i.e. 410 where my 15k amount was deducted. now on 11th i blocked my 20K for 410 right issue via my icici net banking app. now i have two questions 1. What about the token value(15K), will it count when i will receive the stocks 2. Is am going in the correct direction or i missed something ?

  • @kikiindia
    @kikiindia4 ай бұрын

    South Indian Bank ka right issue Aya hai to mere purana South Indian Bank ke share hai to vo bechna hoga

  • @pinakinandanbehera531
    @pinakinandanbehera5313 ай бұрын

    How to know the listing Price...?

  • @kuoshsethh452
    @kuoshsethh4525 ай бұрын

    What is the listing price ? How is it derived ?

  • @Solotravelerajitesh
    @Solotravelerajitesh4 ай бұрын

    If possible please show any demo for kite

  • @Mahesh-tv6xo
    @Mahesh-tv6xo6 ай бұрын

    I bought RE yesterday and applied for shares through SBI ASBA yesterday evening. Will my application be rejected because I applied for shares even before RE reached my demat account ?

  • @Mahesh-tv6xo

    @Mahesh-tv6xo

    6 ай бұрын

    It is regarding GRASIM RE

  • @akhileshshukla4768
    @akhileshshukla47684 ай бұрын

    RIGHT ISSU KO MARKET PRICE ME SELL KAR SAKTE HAI KYA

  • @gokulakannan818
    @gokulakannan81811 ай бұрын

    For the sake of non-hindi speakers, can we have future videos in English please?

  • @rajshrivastav8690

    @rajshrivastav8690

    5 ай бұрын

    Turn on caption

  • @sohamdutta.

    @sohamdutta.

    5 ай бұрын

    No need

  • @youngsteronline

    @youngsteronline

    5 ай бұрын

    Hindi seekh lo , kya h burai h

  • @SpaceTimeBeing_

    @SpaceTimeBeing_

    4 ай бұрын

    ​@@youngsteronlinebruh, that's like asking beggers to just get rich. India is diverse with great older languages. Let they help everyone.

  • @dream_cricket_dhoni

    @dream_cricket_dhoni

    4 ай бұрын

    No

  • @DevC-mt2md
    @DevC-mt2md5 ай бұрын

    At 8:39 you mention listing price. How / where can we find this value?

  • @sachinbpathak

    @sachinbpathak

    5 ай бұрын

    Please share if you find an answer to this.

  • @rajeshwareyesurgery-childc4515
    @rajeshwareyesurgery-childc45155 күн бұрын

    MEANS IF I WANT RIGHTS SHARE , FIRST I BUY THE RIGHTS ENTITLEMENT ISSUED TO ME OF FROM OPEN MARKET AND THEN APPLY FOR RIGHTS ISSUE VIA ASBA TO COMPLETE THE WHOLE PROCESS?? I ONCE BOUGHT THE RIGHTS ENTITLEMENT SHARE AND DID NOTHING FURTHER!!!!!!

  • @safdaraziz9906
    @safdaraziz99066 ай бұрын

    What is the listing price here? This piece of puzzle is making things hard to understand. Please clarify

  • @sanjaydhariya184
    @sanjaydhariya1844 ай бұрын

    Hello Madam, What about unlisted share's right issue? It can not be sold online.

  • @RitvikRaga

    @RitvikRaga

    Ай бұрын

    Yes, its sell through private placement

  • @farmanansari9766
    @farmanansari97665 ай бұрын

    i have 24000 share of Dipna pharma ltd, i want to buy right issue share. do i need to apply or they will reflect in my portfolio without any application? and what about their payment because these are fully paid share. i dint know the process of applying right issue shares?

  • @bharatgupta3287
    @bharatgupta32874 ай бұрын

    What is listing price?

  • @shivasiddharthnarayanan
    @shivasiddharthnarayanan4 ай бұрын

    What is meant by STT ?

  • @ranirjn
    @ranirjn6 күн бұрын

    Mam when can i sell my RE

  • @gohilraj1
    @gohilraj15 ай бұрын

    Mere pass Nagreeka expotrs ltd ke 2000 share hai. Jo maine 78.50 Rs price per share liya tha. Ab company ne right issue kiya hai jiski price rakhi hai 20 Rs per share. To muje kya karna chahiye taki mujhe profit ho. Pls reply.Right issue ratio 3:2

  • @mohammedmujadid

    @mohammedmujadid

    Ай бұрын

    Kya kiye ho

  • @goldensingers01
    @goldensingers018 ай бұрын

    Madam namaskar. Maine September mahine mein Orient Green Power. K Re Sher open market se Apne paise se10000 Sher purchase kiya tha lekin Maine apply nahin kiya tha bad mein mere demat account se debit ho gaye hain to please ab kya karna chahie

  • @varsitybyzerodha

    @varsitybyzerodha

    8 ай бұрын

    Hi, we're sorry about this. Could you please create a ticket on: support.zerodha.com/ with details of the issue, so we can have this resolved at the earliest?

  • @harishkenchugonde3880
    @harishkenchugonde38805 ай бұрын

    Lot of confusion with rights entitlement and right issue🥵🥵

  • @pristine2515
    @pristine25157 ай бұрын

    What is the listing price and how to get that for any RE?

  • @DevC-mt2md

    @DevC-mt2md

    5 ай бұрын

    Please share if you find an answer to this?

  • @ravijivrajani8597
    @ravijivrajani859721 күн бұрын

    @12:06 if we apply right issue@150 then we will profit @ ₹60 and if we sell right entitlement then we will profit @55 then again we losse ₹5/share why we sell right entitlement?

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