How Do I Apply for Right Issue at Motilal Oswal

Last Updated: Mar 19, 2024 Value Broking 2 Mins 3.0K

To initiate the process of participating in a rights issue with Motilal Oswal or any other brokerage company, you will generally be required to adhere to a specific procedure. Rights issues serve as a method for corporations to secure additional capital by extending the chance to current shareholders to acquire extra shares at a reduced price.

Thoroughly examine the rights issue offer document furnished by the company that is offering the rights. This document encompasses crucial details about the offer, including the quantity of rights shares available, the subscription price, and the procedure for making an application.

Ensure that you meet the necessary criteria to participate in the rights issue. Eligibility prerequisites can fluctuate and may hinge on your ownership of existing shares in the company.

Verify that your Motilal Oswal trading account maintains adequate funds to cover the expenses associated with applying for the rights shares. These funds will be utilised for subscribing to the additional shares.

Typically, Motilal Oswal will dispatch the rights issue application form to you, either via email or physical mail. This application form provides essential particulars, including the number of rights shares you are entitled to apply for and instructions for making payments.

Duly fill out the rights issue application form as directed. Ensure the accuracy of the information provided, including your client ID, the quantity of rights shares you intend to apply for, and your payment particulars.

Submit the properly filled application form along with any requisite documents, such as a copy of your PAN card and bank account details, like a cancelled cheque, for making payments.

Transfer the requisite funds to the designated bank account mentioned in the rights issue offer document. Typically, this transaction is conducted through methods such as NEFT, RTGS, or other specified payment mechanisms. Be vigilant about adhering to the stipulated deadline for making payments.