What different methods are there for applying to a rights issue?

• A company offers additional shares to its existing shareholders through a rights issue based on the amount of shares they already hold.
• The right shares are used to fund a new project, reduce debt, or restructure its equity capital base. Here, the shares are generally available at a discounted price compared to the market price.
• Rights Entitlement (RE) intimation is received in the email of the investors in temporary form of Demat securities. This lets an investor to ascertain his eligibility to apply for the rights issue. If they don’t want to apply, they can even sell their RE to other investors in the secondary market.
  

• To apply for a rights issue, shareholders can use the Applications Supported by Blocked Amount (ASBA) process similar to applying for an IPO if their bank supports it. Alternatively, the company's Registrar and Transfer Agent (RTA) will send a Composite Application Form (CAF) via courier to those who cannot apply online. The filled form can be submitted at a Self-Certified Syndicate Bank (SCSB) branch (WEB).
• The forms can also be downloaded from the BSE and NSE websites by visiting bseindia.com/publicissue.html and nseindia.com/market-data/all-upcoming-issues-ipo.
• The rights issue details, such as the Rights Issue ratio and the Book closure date, will be mentioned in the application form.
• The application form requires the following details to be filled in:

1. 1. Cheque /DD details (non - ASBA) .
   2. Select NSDL if the DP starts with IN. Select CDSL if the DP ID is completely  numeric.
   3. PAN number. If the account is a joint account, the PAN of the second holder should also be filled in.
   4. DP details. (DP ID and the beneficiary number ).
   5. Signatures of both account holders if it is a joint account.

• Once the form is filled, it can be submitted to any SCSB branch. The list of banks can be found on the application form.