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

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[NiVi]

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

[utkarshsharma]

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

[sankish]

Madam, I want to express the same sentiment expressed by others here. "Listing price" has confused the whole thing ! As someone else has posted, we are going for 'rights buy' only if we are interested in a fundamentally sound stock with future prospects bright, available to the share holder at a good discount. Your Buy / Sell discussion is valid only for those who want to Sell the RE.

[ponssap]

I am a non Hindi speaker so the sub title was useful for me.
Thanks 👍.

[DevC-mtmd]

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

[sureshgs]

Crisp presentation Ma'am. Thank you.

[akashsi]

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

[pradipkumarbhadrashetty]

Hey @Asthakhurrana love the way you explain the things more simplified. Clear cut and mellifluous tone never boaring to listen for gaining good knowledge.

[omprakashboda]

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....🙏

[VikashAgarwal]

i did not understand, what is the listing price? how can i decide on if i should apply for rights or sell it.. i am not able to understand the same.. can you explain more clearly,
See there are two things.
one is share price and one is rights price.

so currently if share price 1000 and rights price is 450. so where is the listing price of what is this listing price.. you have mentioned in the video.

[Drive_and_Dividend]

From investment yadna to zerodha good progress mam😊

[GudduYadav-hzgy]

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

[bharathreddy]

Thank you mam, absolute spoon feeding love it ❤

[osmreview]

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

[kg]

Kaafi achhe se explained tha. Thanks !

[sheikhfarzyn]

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

[Manishkumar-jkcc]

Very tough to understand when to gain or when to loose. Until & unless we invest our own money we don't understand these complicated things.

[dr.poojajain]

I did not understand how to apply for rights issue if I have received entitlement in my demat account

[mangeshwaghambare]

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

[bikendersingh]

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