What is a Right Issue?

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.
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