National Securities Depository Limited · BSE:NSDL
National Securities Depository — Investor Presentation (July 2023)
35 slides from National Securities Depository's investor presentation, July 2023
Slide 1: Primary Market - Rights Issue
Primary Market - Rights Issue
Slide 2: Disclaimer
DISCLAIMER The information contained in this material is for only educational and awareness purposes related to securities market and shall be used for non-profitable educational and awareness activities for general public. No part of this material can be reproduced or copied in any form or by a
Slide 3: Flow of Presentation
Flow of Presentation Rights Shares –Overview Rights Issue – Types of Securities Offered Rights Issue – Key Terms Rights Issue – Key Documents Electronic Rights Entitlements (REs) Trading in Electronic Rights Entitlements Application through ASBA Mechanism Rights Issue Application thr
Slide 4: Rights Issue – Overview
Rights Issue – Overview Offer of securities by a listed Company to those who are shareholders of the Company as on the record date fixed for the said Rights Issue. Decision to have a Rights issue Taken by the Board of Directors of the Company. Existing shareholders as on a particular date (R
Slide 5: Rights Issue – Types of Securities offered
Rights Issue – Types of Securities offered Fully paid equity - Equity Share where the full Issue Price is paid upfront shares - Equity Share where only a part of the Issue Price is paid upfront. Partly paid - Balance “Call money” is paid in within 12 months of issue. equity shares - Non payment of -
Slide 6: Rights Issue – Key Terms
Rights Issue – Key Terms - Date announced by the Company. - Date for determining the shareholders to whom the Rights Issue will Record Date be made and who would be eligible to participate in the Rights Issue. - Disclosed to the Stock Exchanges. - Provided on the Letter of Offer (LOF)/ Application F
Slide 7: Rights Issue – Key Terms
Rights Issue – Key Terms - Period during which shareholders/ investors can renounce or transfer their Renunciation Rights Entitlements; Period - Disclosed in the Letter of Offer (LOF). Rights Issue - Price to be paid by an applicant to subscribe to the securities offered Price through Rights Issue.
Slide 8: Rights Issue – Key Documents
Rights Issue – Key Documents • Draft offer document Draft Letter of • Filed with SEBI for observations Offer (DLOF) • Includes issue related information and disclosures • Made available on website of SEBI and Lead Managers • Final offer document • Includes the Issue Price, Rights Entitlement (RE) Ra
Slide 9: Rights Issue – Key Documents
Rights Issue – Key Documents • Abridged version of the LOF Abridged Letter • Sent to the shareholders along with the Application Form of Offer (ALOF) • Sent via e-mail/ dispatched through registered post / speed post / courier at-least 3 days before issue opening • A letter/ notification containing
Slide 10: Sample Rights Issue Application Form (1/4)
Sample Rights Issue Application Form (1/4) Amount to be paid at time of application Amount to be paid later 10
Slide 11: Sample Rights Issue Application Form (2/4)
Sample Rights Issue Application Form (2/4) To be filled by Applicant 11
Slide 12: Sample Rights Issue Application Form (3/4)
Sample Rights Issue Application Form (3/4) 12
Slide 13: Sample Rights Issue Application Form (4/4)
Sample Rights Issue Application Form (4/4) Declarations on Source of funds and Future payments Signature must match with specimen signatures provided To be filled by Bank (SCSB) 13
Slide 14: Sample Abridged Letter of Offer (ALOF)
Sample Abridged Letter of Offer (ALOF) 14
Slide 15: Sample Rights Entitlement Letter
Sample Rights Entitlement Letter 15
Slide 16: Electronic Rights Entitlements (REs)
Electronic Rights Entitlements (REs) • A separate ISIN is created for REs. • Demat form only. Credit of Rights • REs credited to the demat account of the shareholders as on Record Entitlements Date, before the issue opening date. (REs) • May be credited to demat suspense escrow account in certain ca
Slide 17: What to do with Rights Entitlements? – Options available
What to do with Rights Entitlements? – Options available Apply for a part of the Apply for a part of the Rights Entitlement and Apply to full extent of Rights Entitlement renounce the other Rights Entitlement (without renouncing part of the Rights the other part) Entitlement Apply for the full exten
Slide 18: Trading in Electronic Rights Entitlements
Trading in Electronic Rights Entitlements How to trade in Rights Entitlements? On-Market Off-Market Buy/ sell on the floor of the Stock Exchanges through a Buy/ sell using Delivery Instruction Slips (DIS) Stock Broker • T + 2 settlement (T refers to the date of trading) • Trade to be effected off-ma
Slide 19: Overview of Rights Issue Application Process
Overview of Rights Issue Application Process How to Apply in a Rights Issue? Apply Through Registrar’s Web based Portal Apply Through ASBA (R-WAP)* • Application money remains in Applicant’s bank account till allotment • Application money gets debited from Applicant’s bank • List of SCSBs available
Slide 20: Participation in Rights Issue by Shareholders holding Physical Shares
Participation in Rights Issue by Shareholders holding Physical Shares Credit of REs for Credited to a separate Escrow Demat Account before the Physical Shareholders opening of the issue Option 1 Option 2* Additional facility for Physical Shareholders who cannot open Physical Shareholder can open a d
Slide 21: Plain Paper Application
Plain Paper Application Option to make an application on Plain Paper. Application to be submitted to SCSB before issue closing, for blocking of application money in Applicant’s bank account with the said SCSB. REs cannot be renounced. Details to be provided in Plain Paper Application: - Name
Slide 22: Plain Paper Application
Plain Paper Application - No. of additional rights securities applied for, if any; - Total no. of rights securities applied - Details of the ASBA Bank Account and authority to SCSB to block equivalent amount - In case of NRI shareholders making application with Indian address, details of NRE/ FCNR/
Slide 23: Application through ASBA Mechanism
Application through ASBA Mechanism Application through ASBA (can be made through Online or Physical process) Physical ASBA Online ASBA Print the Application Form/ use Plain Paper Check with your SCSB if it offers an online Application; facility for making application in a Rights Issue Fill-in the ne
Slide 24: Illustration of Online ASBA: Application through Internet Banking (1/2)
Illustration of Online ASBA: Application through Internet Banking (1/2) Login, go to Investment Tab and select Rights Issue and Click on Apply for Rights Issue in the next screen Select relevant Issuer and Initiate Payment 24 Illustration only. Please contact your SCSB for the details on online ASBA
Slide 25: Illustration of Online ASBA: Application through Internet Banking (2/2)
Illustration of Online ASBA: Application through Internet Banking (2/2) Read the Instructions, fill in necessary details Click proceed to submit the bid. Thereafter, confirm details and complete the application 25 25
Slide 26: Rights Issue Application through R-WAP
Rights Issue Application through R-WAP Visit Registrar’s Web based portal and go to R-WAP -> Apply for Rights Issue Confirm details and complete necessary verification procedures (including through OTPs) Select payment option (Through Internet banking/ UPI) and proceed for payment Complete payment G
Slide 27: Applying through R-WAP: Confirm Details and Verification
Applying through R-WAP: Confirm Details and Verification • Enter DP ID-Client ID, and PAN • Enter Email address and mobile number and generate OTP • Enter OTP and complete verification 27 27
Slide 28: Applying through R-WAP: Application
Applying through R-WAP: Application Fill in the necessary details in the required fields No of shares to apply Bank Details – Net Banking or UPI 28 28
Slide 29: Application through R-WAP Payment
Application through R-WAP Payment • Click on “Proceed to payment”, • You will be taken on your bank page/ UPI Application to make payment • Once payment is completed, a reference no for your application will be generated • If you choose to pay through UPI, necessary bank account details need to be e
Slide 30: Checking Allotment Status and Grievance Mechanism
Checking Allotment Status and Grievance Mechanism Status of allotment/ refund related to Rights Issue application - informed to investors by SMS/email/ letter. - May be checked by visiting “Investor Services” section on the website of the Registrar for the Issue (RTA). Issue with regard to Non
Slide 31: Checking Allotment Status and Grievance Mechanism
Checking Allotment Status and Grievance Mechanism Contact Details of RTA: - Provided in Letter of Offer of Rights Issue - Available on SEBI Website at: https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&in tmId=10 Non-Satisfactory Resolution by RTA -> File a complaint again
Slide 32: Illustration for Allotment Status (Email)
Illustration for Allotment Status (Email) Promoter can subscribe to entire lot of shares. No minimum subscription. 32
Slide 33: Illustration for Allotment Status (RTA Website)
Illustration for Allotment Status (RTA Website) 33
Slide 34: Illustration for Allotment Status (Bank/ Stock Broker Website)
Illustration for Allotment Status (Bank/ Stock Broker Website) 34
Slide 35: Thank You
Thank You 35
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