What is a Right Entitlement?

1. What is Rights Entitlement (RE)?

Rights Entitlement (RE) is a privilege issued by Tradejini to existing shareholders, allowing them to subscribe to new shares or other securities that they are eligible for under the rights offer. REs are allocated to shareholders based on a ratio of their existing equity shares held as of the record date.

2. What are the options available to an Eligible Equity Shareholder in the Rights Issue?

Eligible Equity Shareholders can:

i. Apply for their Rights Equity Shares up to the full extent of their Rights Entitlements.

ii. Apply for their Rights Equity Shares to the full extent of their Rights Entitlements and apply for additional Rights Equity Shares.

iii. Apply for their Rights Equity Shares to a part of their Rights Entitlements (without renouncing the other part).

iv. Apply for Rights Equity Shares to a part of their Rights Entitlements and renounce the remaining part.

v. Renounce their Rights Entitlements in full.

3. How are Rights Entitlements (REs) issued?

Rights Entitlements (REs) are issued in dematerialized form under a separate ISIN created by Tradejini.

4. What is the process of on-market and off-market renunciation?

(a) On-Market Renunciation: Investors may trade/sell their Rights Entitlements on the secondary market platform of the Stock Exchanges through a registered stockbroker.

(b) Off-Market Renunciation: Investors may transfer Rights Entitlements through an off-market transfer via a depository participant. This transfer must be completed before the Issue Closing Date.

5. What happens to Rights Entitlements (REs) not subscribed or renounced by the Issue Closing Date?

Rights Entitlements (REs) not subscribed or renounced by the Issue Closing Date will lapse and be extinguished.

6. Can persons who are not existing shareholders apply to the Rights Issue?

Yes. Individuals who have acquired Rights Entitlements (REs) through on-market or off-market renunciation are eligible to apply for the shares offered under the Rights Issue.

7. What if no application is made for subscribed Rights Entitlements (REs)?

If no application is made by the purchaser of REs before the Issue Closing Date, the REs will lapse, and no shares or securities will be credited. The purchaser will lose the premium paid for the REs.

8. Can an application in the Rights Issue be made using a third-party bank account?

Investors can make payments only using a bank account held in their own name. Applications with payments from third-party bank accounts are liable to be rejected.

9. Can a joint bank account be used for making applications on behalf of shareholders?

Yes. All joint holders must sign the Application Form, and communication will be addressed to the first Applicant.

10. How can a shareholder holding shares in physical form credit Rights Entitlements and apply in the Rights Issue?

Physical shareholders must provide demat account details to Tradejini or the Registrar to the Issue at least two working days before the issue closing date. The application will be considered only if REs are in the demat account furnished.

11. Where can one find information related to REs?

Investors can find information related to REs in the letter of offer filed by Tradejini with Stock Exchanges, available on the SEBI website under “Home » Filings » Rights Issues.”