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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