Announcements

Sundaram Finance Holdings Limited has credited existing shareholders’ Demat accounts with REs (Rights Entitlements) after it announced a Rights Issue.

What does this mean?
A company announces a Rights Issue to invite existing shareholders to buy more shares, usually at a discounted price. These shares are known as Rights Shares.

After the Rights Issue is announced, the company then credits its existing shareholders’ Demat Accounts with REs (Rights Entitlements).

These REs are not the Right Shares but the benefit given to existing shareholders to apply for the Right Shares. If shareholders do not wish to apply for these Rights Shares, they can even trade these REs in the market until a particular date.

To learn more about rights, click here.

What does this mean for Sundaram Finance Holdings Limited  shareholders?
Existing shareholders of Sundaram Finance Holdings Limited (as on record date 27th April 2021) have two options - 

1. They can use their REs to apply for more shares of Sundaram Finance Limited (in proportion to their existing shares - 23 for every 49 shares held) at a price of Rs.50  per share.
2. If they do not wish to apply for more shares, they can even trade their REs in the market.

Please note: REs only give you the right to participate in the ongoing Rights Issue of a company. This means using these REs you can make an application for Rights Shares with necessary application money or renounce the REs before the issue closes.

REs which are neither subscribed by making an application with requisite application money nor renounced, on or before the Issue closing date shall lapse and shall be extinguished after the Issue closing date.

What dates should one keep in mind?
Last date to trade your Rights Entitlement: 28th May 2021
If you do not wish to apply for the rights shares, you can trade your REs in the market on or before this date.
Last date to apply for Rights Shares:  2nd June 2021
If you’re interested in applying for the right shares, you can apply on or before this date.

How To Apply for Rights Shares?
There are 3 ways to apply -
1. Online through ASBA (Applications Supported by Blocked Amount) if your bank supports it just like you do for an IPO. 

2. Online through the RTA (Registrar and Transfer Agent) website 
https://online.cameoindia.com/ 

3. Offline by filling the Composite Application Form (CAF) received in your courier from the company’s RTA and then submitting it at a Self Certified Syndicate Banks (SCSBs) branch.

Margin shortfall penalties are effective from 1st May 2021 onwards. This means Upstox will now pass on any Exchange-levied penalties arising out of a margin shortfall to clients.

While we had initially stated that this would be effective from 12th April 2021 onwards, we extended the deadline. Hence, if you’ve got margin shortfalls, kindly fund your account immediately on the trade day itself to avoid penalties.

What does this mean?
As you are aware, in order to comply with the Exchange and regulatory requirements, we are required to collect upfront margin from all clients. As a result, clients with insufficient margins will not be able to place an order with us upfront. 

However, there could be instances when margin requirements go up after clients enter into a trade or take any actions on their current Open position(s). In such instances, clients are required to add sufficient funds to their Trading account to fulfil the resulting margin shortfall (if any).

If sufficient funds are not added and it leads to a margin shortfall on the trading day (T day), then the margin penalty levied by the Exchange would be passed on to such clients (this will reflect in the client’s ledger). If the shortfall continues on T+1 day, subsequent action as per the Upstox risk policy would also be applicable.

What are the few instances when margin requirements could go up, that clients need to be aware about?
Here are few examples* when margin requirements could move up:

1. A leg of a hedged position squared off by client or a leg of hedged position expiring leading to an increase in margin requirement.
2. While the margin rate remains the same, an increase in price leads to an increase in margin requirements.
3.  A change in the initial margin rates due to high volatility in any stock or scrip leading to an increase in margin requirement. 

What should you do to avoid margin shortfall penalties?

1. Keep track of the margin requirements. You can view any shortfall in your funds from the Upstox mobile app or web platform. You can view the shortfall on the ‘Funds’ screen under the ‘Available to Trade’. If the amount here is negative, then you are in a shortfall. 
2. In case of a shortfall, please add funds to your account immediately. You can add funds instantly on Upstox via UPI/NEFT/RTGS/IMPS. 

*These are only a few examples; there can be other scenarios as well.

Reliance Industries Limited’s (RIL) partly paid-up equity shares will be suspended from trading from 11th May 2021.

What are partly paid-up equity shares?
These are shares in a company which have only been partially paid for and as the company requires more funds, calls will be made from time to time from the holder of such partly paid-up shares until the shares are fully paid-up. Once fully paid-up no further call would be made towards such shares.

Why has trading been suspended on these shares?
RIL announced that the first call of Rs. 314.25 per partly paid-up equity share would be payable from 17th May to 31st May 2021. This means between these dates, Rs. 314.25 will need to be paid per partly paid-up equity share by its holders. In order to determine the holders of these partly paid-up equity shares the company has fixed 12th May 2021 as the record date. Every person who shall be holding these partly paid-up equity shares in their Demat account as on the record date would be liable to pay the call amount to the company.

What to keep in mind if you are a holder of RIL’s partly paid-up equity shares?
Here are the pointers to keep in mind if you own partly paid-up equity shares of RIL:

1. The last date for trading of these partly paid-up equity shares will be 10th May, 2021. 
2. If you are holding these shares post 12th May 2021, you’ll be liable to pay Rs. 314.25 per partly paid-up equity share

To know more, you can also read and refer to the Exchange circulars here:

NSE: https://bit.ly/3beZIkt

BSE: https://bit.ly/3f4T1CC

That’s all about the RIL’s partly paid-up shares, stay tuned for more updates from Upstox!

We are conducting a scheduled upgrade & maintenance activity on 1st May'21, from 9.00 AM to 1.00 PM to ensure that you can enjoy a seamless trading experience on Upstox. During this time you may not be able to login to the Upstox mobile app & desktop platform to access some of our core services. Thank you for your patience & cooperation.

1st May 2021 is a bank holiday on account of Labour Day. Hence, any fund withdrawals placed after 8:00 AM tomorrow, 30th April 2021 will be processed on Monday, 3rd May 2021. To receive funds before Monday, kindly place your fund withdrawal requests before tomorrow 8:00 AM. Thank you for your patience.