Announcements

As per SEBI’s recent guidelines, there has been an update on the way margins are reported from 1st December 2020. You can read more about this on our blog here.

This change has an impact on your current funding process done via Smart Transfer, as brokers are required to report peak margin exposure of all customers to the exchange at multiple points throughout the day. And to comply with this regulatory change, we are making a few changes to the current Smart Transfer process.

What is the current process?
As per the current process, IndusInd Bank (IBL) only transfers the funds that are to be debited from your account i.e the funds that you have used towards trading.

What is the change in the process?
Starting 1st December, 2020, as per SEBI regulation, IBL is required to transfer the amount equivalent to the highest (peak) margin being used by you during the day instead of the amount that you use towards executing trades.

As a result, IBL shall transfer the entire amount to your Upstox account that you marked out for trading using Smart Transfer on that particular day. This amount will stay in your Upstox trading account unless you do place a withdrawal request to transfer that amount back to your IBL account.  Please note that you will not be earning interest on the amount that stays in your Upstox trading account during this period. However, you will continue to earn interest on the amount that remains in your IBL account.

For example: You’ve transferred Rs. 5 lakhs from your IBL account to your Upstox account via Smart Transfer. Let’s say you choose to invest Rs. 1 lakh towards purchasing some stocks. At the end of the day, the net debit in your ledger would amount to Rs. 1.1 lakh (after considering taxes). Prior to the new guidelines, we would have debited Rs 1.1 lakh from your IBL account. But as of now, we shall debit the entire sum of Rs. 5 lakhs irrespective of whether or not you have actually executed trades using this amount. The unused Rs. 3.9 lakhs will remain in your Upstox trading account, until you place a withdrawal request to transfer this back to your IBL account.

What could you do?
You could allocate (keep aside) only the amount, which you plan to use for trading on that day from your IBL account. But don’t worry! The unused amount that you transfer to your Upstox trading account from your IBL account from one particular trading day will remain in your Upstox wallet which you can use for trading in the next trading session.

Rest assured, we are working towards a solution to ensure that we can transition back to the system of debiting only the amount from your IBL account that you use for trading. Stay tuned for more updates.

If you have any questions or concerns regarding this change, please feel free to reach out to us by raising a ticket on our mobile or web platforms. 

Square off will be at 3.10 PM for Equity Intraday and F&O, 4.45 PM for Currency Derivatives, and at 11.25 PM for MCX. Kindly plan your trades accordingly.

SHOPER-RE | 750649 | INE498B2001

Shoppers Stop Company has issued rights to its existing shareholders. This means if you hold shares of this company as on Record date you can apply for more shares of the same company (in proportion to your existing shares) (17 for every 70 shares held) at a discounted price of Rs. 140.

Shoppers Stop will issue Right Entitlements (REs) to anyone who holds its shares as on record date November 20, 2020. These REs will be temporarily traded on the exchanges and will then be deactivated. You can either use the REs to apply for the rights shares or you can sell them in the market (You will not be able to transact the REs intraday as they are settled on a trade-to-trade basis). Once you either receive the REs from the company or purchase it from the market, you can apply for the rights shares.

For the above corporate action, keep these dates in mind:
Record date - 20th November 2020, the date you needed to have shares in your demat to receive RE shares.
Subscription close date - 11th December 2020, the date by which you need to subscribe after which the RE shares cease to exist.
Last trading day of RE shares - 7th December 2020, if you do not wish to subscribe you can sell the discounted RE shares online and you may earn some profits.

Note: If you do not take any action, you will lose the opportunity to make some profits.

How To Apply?
You can apply for a rights issue online through ASBA (Applications Supported by Blocked Amount) if your bank supports it just like you do for an IPO. 

OR

You can apply offline by filling the Composite Application Form (CAF) received in your courier from the company’s RTA (Registrar and Transfer Agent) and then submitting it at a Self Certified Syndicate Banks (SCSBs) branch.

Due to the lockdown, SEBI has allowed applying for these rights by visiting the RTA website. Just follow these steps- 

1. Visit https://rights.kfintech.com/shoppersstop/
2. Click on ‘Apply for Right Issue’
3. Select all the applicable choices under 'Declaration':
4. Select below eligible options:
   a. If you hold the shares on Record date select the first option - “I am a shareholder as on Record Date and undertake to hold RE till issue closing date”
   b. If you bought RE shares in the open market select the third option - “I am renouncee and hold rights entitlement in a valid demat account..”
   c. Select I am holding shares in Dematerialized Form
   5. Fill in your DP ID Client ID (check details below on how to find your DP details), and PAN details 
   6. Click on ‘Submit’
   7. On the next page, register your mobile number and your email ID
   8. Pay for your order using UPI or NEFT

You can find your DP and Client ID with these steps -

If you are an Android device user:

1. Log-in to the Upstox Pro Mobile app with your credentials
2. Click the icon with three lines on the top left corner
3. Click on your name at the top left corner of the page
4. You will see your account details listed on the screen 
5. Note down the depository name and your Demat account number.
6. The first 8 digits of your 16 digits Demat account number is your DP ID and the last 8 digits are your Client ID. Your DP Name is RKSV securities India Private Limited.

In case you still own physical shares despite opening a Demat account, select ‘Demat Account number Information registration’ and follow the instructions on the screen.

The Rights Shares will be credited to your Demat account and you will also receive a confirmation SMS from the depository for the same. Note that the Rights Shares under temporary ISIN will not be available for trading/holding until listed on Exchange.

To know more about FAQs on Rights Entitlement Trading visit the below links:

https://www.nseindia.com/trade/members-faqs-rights-entitlement-trading

https://www.bseindia.com/downloads1/FAQs_on_Rights_Entilement_Trading.pdf

On account of the RBI policy, all Bank Nifty Options Cover Orders (CO) will be blocked for today, 4th December 2020. However, you can place fresh CO from Monday, 7th December 2020. Kindly plan your trades accordingly.

Square off will be at 3.10 PM for Equity Intraday and F&O, 4.45 PM for Currency Derivatives, and at 11.25 PM for MCX. Kindly plan your trades accordingly.