6. How can I apply for shares using Rights Entitlements (RE)?
You can apply for shares using their Rights Entitlements (RE) through the ArihantPlus app, the web trading platform, or directly via their bank using the ASBA facility, if applicable. Below is a simple step-by-step guide to help you understand the process.
Step-by-Step Guide to Apply Using Rights Entitlements
Step 1: Check RE credit in your demat account
Once the Rights Issue is announced, eligible shareholders will receive Rights Entitlements (RE) in their demat account under the respective company name.
Step 2: Decide how many RE you want to use
You may choose to use all or part of your available RE to apply for new shares at the discounted Rights Issue price.
Step 3: Apply through any one of the following methods
Option A – Through your broker’s app (ArihantPlus, Zerodha, Groww, etc.)
- Open the Arihantplus app
- Go to Search / Explore
- Select the Rights Issue company
- Enter the RE quantity you wish to apply for
- Confirm and make payment
- Submit the application
Option B – Through Net Banking (ASBA)
- Log in to your bank’s net banking account
- Navigate to Investments → Rights Issue
- Select the company
- Enter the RE quantity
- Submit the application using ASBA
(The application amount will be blocked in your bank account)
Step 4: Wait for allotment
After the Rights Issue closes:
- If shares are allotted: The blocked amount is debited and shares are credited to your demat account
- If shares are not allotted: The blocked amount is automatically unblocked and returned
Important Points to Remember
- Rights Entitlements only give you the right to apply; payment is required to receive shares
- Applications must be submitted before the Rights Issue closing date
- If you do not wish to apply, you may sell your RE on the exchange within the trading window
- Unused or unsold RE will lapse and become worthless
- Investors can also buy additional RE from the market and apply using them
In Simple Terms
RE → Apply → Pay via UPI/ASBA → Shares credited or money unblocked
Related Articles
