Rights Issue Through ASBA

Learn how to navigate the application process for a Rights Issue using ASBA through leading banks. Discover step-by-step instructions for HDFC, SBI, ICICI, Axis, Kotak, PNB, and YES Bank, along with helpful tips to ensure a smooth experience.

For investors, applying for rights issues has become a breeze thanks to the ASBA (Application Supported by Blocked Amount) feature available through Net Banking. This method keeps your application amount securely blocked in your bank account until shares are allotted, eliminating the need for manual submission or cheques.

Note:

Applications for rights issues are managed through banks utilizing the ASBA feature. While stockbrokers handle the trading of Rights Entitlements (REs), the actual application for rights shares is submitted via your bank’s Net Banking or offline ASBA process.

Here are detailed guides for some of the most popular banks providing online ASBA services for rights issue applications:

Rights Issue Through HDFC Bank

Applying for a rights issue through HDFC Bank is simple with their Net Banking portal, thanks to the ASBA facility. Here's how you can do it:

1. Log in to HDFC Net Banking:

Visit the HDFC Net Banking page and enter your Customer ID/User ID and Password/IPIN.

2. Navigate to the IPO/Rights Issue Section:

On your dashboard, find the ‘Request’ tab at the bottom left and select ‘IPO/Rights Issue – New’ from the menu.

3. Proceed to Application:

Click Continue, enter your Account Number, Name, and PAN, then click Continue again.

4. Select the Rights Issue Option:

Choose ‘I want to apply for Rights Issue/Call Money’.

5. Choose the Company:

Pick the rights issue you wish to apply for from the available list and click Apply.

6. Enter Application Details:

Fill in your Name, PAN, DP ID, and the number of shares you're interested in.

7. Confirm and Submit:

Check all details thoroughly and click Proceed. Your funds will be blocked under ASBA, and you'll receive a unique Application Number and Transaction Reference.

8. Save Confirmation:

Download or print the confirmation PDF for your records. You can track your application status later under “IPO/Rights Issue Application History.”

Rights Issue Through SBI Net Banking

If you have a savings account with State Bank of India (SBI) and ASBA is enabled, you can apply for a rights issue directly through SBI Net Banking. This method is straightforward, secure, and keeps funds blocked until allotment.

Steps to Apply through SBI Net Banking:

1. Log in to your SBI Net Banking account.

2. Click on e-Services from the top menu.

3. Choose ASBA Services from the dropdown.

4. Under ASBA, select IPO (Equity/Rights).

5. Click on the Apply IPO tab and accept the terms.

6. A list of ongoing IPOs and Rights Issues will appear. Choose your desired rights issue and click Go.

7. Confirm your details and submit the application.

8. The details will auto-fill, input the quantity and price, then click Submit.

9. The application amount will stay blocked in your SBI account until allotment.

10. Upon successful allotment, the funds will be debited, and shares will be credited to your linked Demat account.

Ensure your Demat account is properly linked with your SBI account to avoid any issues or delays.

Rights Issue Through ICICI Bank

ICICI Bank offers a seamless way to apply for a Rights Issue through its ASBA facility, ensuring your funds stay blocked until shares are allotted, offering both convenience and security.

Steps to Apply:

1. Log in to your ICICI Bank Net Banking account.

2. Go to the ‘Investments & Insurance’ section.

3. Click on ‘Invest Online’.

4. Select ‘Online IPO, Rights Issues & Call Money’.

5. Click on ‘Invest Online’, choose ‘Rights Issue’, and proceed.

6. Validate your details and specify the number of rights issues you have.

7. Agree to the terms and proceed.

8. Select the desired Rights Issue from the list.

9. Enter your bid details, PAN, and DP ID–Client ID, then submit.

10. Submit your application.

Once submitted, the funds will be blocked, and you will receive an acknowledgment number. You can check your application status later through ICICI Net Banking under the Order Book section.

Rights Issue Through Axis Bank

Axis Bank offers a secure and easy way to apply for Rights Issues via its Net Banking portal or Mobile App using the ASBA facility.

Steps to Apply:

1. Log in to your Axis Bank Net Banking account or Mobile App with your credentials.

2. Navigate to the ’Investment’ section and select ‘Online IPO / Rights Issues’ from the dropdown.

3. Click on ‘Apply for Equity IPO / Rights Issues’.

4. View IPO Details to see available Rights Issues.

5. Review the issue details and click ‘Initiate Payment’.

6. Choose your account and investor category, then click Proceed.

7. Enter your bid details (number of shares, price, etc.) and click “Proceed.”

8. Enter the OTP received and confirm your order.

9. Your funds will be blocked in the account until allotment.

After allotment, the amount will be automatically debited, and shares will be credited to your Demat account.

Rights Issue Through Kotak Bank

Kotak Mahindra Bank facilitates Rights Issue applications through its Net Banking portal using the ASBA (Application Supported by Blocked Amount) facility.

Steps to Apply:

1. Log in to your Kotak Mahindra Bank Net Banking account.

2. Navigate to the ASBA tab.

3. For first-time applicants, complete a one-time registration by entering your Demat Account details (DP ID and Client ID).

4. Click on Next, verify the details, and click on Confirm & Submit.

5. Under the Transaction tab, click on ‘Apply Now’ and select the beneficiary.

6. Choose the Rights Issue you wish to apply for from the list of companies. Select the investor category and click on Next.

7. Enter the bid details and click on Next.

8. Review the entered details and submit the application.

Once submitted, the application number will be displayed. The required amount will be blocked in your account and debited only upon allotment.

Rights Issue Through Yes Bank

Yes Bank provides a straightforward method for applying for Rights Issues online via its Net Banking platform under the ASBA facility, which blocks your application amount until allotment.

Steps to Apply:

1. Log in to your YES Bank Net Banking account using your Login ID and Password.

2. In the search bar, type ‘E-IPO Details or ASBA’ and click on it.

3. When the SEBI guidelines dialogue box appears, click ‘OK’ to proceed.

4. You will be redirected to a page showing current IPOs and Rights Issues.

5. Select the Rights Issue you want to apply for. Click ‘Apply Now’ or ‘View Prospectus’ if you want to review details first.

6. For first-time users, click ‘Register Applicant’.

7. Enter your Depository Name, Nickname, and DEMAT Account Number, then click Next.

8. Review and confirm your details.

9. Complete verification by entering the OTP sent to your registered mobile number.

10. Go to the ‘Apply for IPO Now’ section to proceed with the rights issue application.

11. On the next screen, fill in Company Name and Investor Category, then click Next.

12. Enter the number of shares you wish to apply for and click Next.

13. Complete verification by entering the OTP sent to your registered mobile number.

14. Upon confirmation, your funds will be blocked, and you’ll see a message confirming a successful Rights Issue application.

After allotment, the amount will be debited, and the shares will be credited directly to your Demat account.

Rights Issue Through PNB Bank

Punjab National Bank (PNB) allows you to apply for a rights issue using the ASBA facility. You can complete the process online via PNB Net Banking or the PNB One Mobile App.

Steps:

1. Log in to your PNB Net Banking account and navigate to the Investments tab.

2. Click on ‘Apply for ASBA’ under the Trading / ASBA section.

3. Choose your Investor Category and Type, then click Continue.

4. A list of ongoing public issues will appear, select the Rights Issue you wish to apply for.

5. Enter your Depository details (DP ID and Client ID), bid quantity, and account number, then click Continue.

The application amount will be blocked in your account and debited only upon allotment.

Key Takeaways

• Applying for a rights issue through banks using ASBA is the most convenient, secure, and SEBI-approved method.

• This process ensures that your funds remain blocked (not debited) until shares are allotted, protecting investors from unnecessary risk.

• While the steps may vary slightly across banks, the overall process remains consistent, select the issue, enter Demat details, confirm, and block funds.

• Always double-check application details like DP ID, Client ID, and quantity before final submission.

• Applications must be completed before the issue closing date, as late submissions are not accepted.

• Stockbrokers are involved only in trading Rights Entitlements (REs); rights issue applications themselves are routed through bank ASBA systems.