A Right Issue refers to the process where a company issues new shares and grants existing shareholders the right to subscribe for these new shares. Holders are allowed, within a specified period and at a designated price, to purchase new shares in proportion to their current holdings.
Main Rules:
- Distribution of Subscription Rights: When a company announces a Right Issue, the system will automatically allocate subscription rights to users based on their shareholdings.
- Subscription Privilege: Eligible shareholders can subscribe for newly issued shares at the company’s set price and in proportion to their holdings within the specified period.
- Application Restriction: For each subscription right in a single portfolio, only one pending application is allowed. Before the application is processed, users can modify their subscription details.