Announcements

The Government of India has announced a 20% stake sale in IRCTC via an Offer-for-Sale and  here are some details: 

Floor price: Rs. 1,367 per equity share

Application date for retail investors (investment limit up to Rs 2 Lakhs): Friday, 11th December, 2020

Click here to get more details on this offer 

What is Offer-for-sale (OFS)?

OFS is an investment opportunity for all types of investors to own shares of a listed company, where a promoter wants to sell off part of their investment. This is conducted on a specific date, via a process that is separate from the normal market trading process.

How is OFS different from normal market trading?

• Unlike normal market trading, OFS is based on a bidding platform provided by the Exchange. 
• All orders placed must be above the base price called floor price set up by the company.
• Investors can bid for even a single share and can also place multiple order bids. 
• All shares allotted to investors via a OFS are settled on T+1 day 

For more information on OFS, click here

Why choose OFS over buying shares directly through the exchange?
The floor price set by a company is usually lower than the current market price at which the stock is being traded. Thus, buying shares via an OFS gives an investor the opportunity to purchase shares of that company at a lower price.
However, since this a bidding-based system, there may be some occasions where the OFS allotment price crosses the current market price of the company. 

How to apply for a OFS on Upstox?
Applying for an OFS is quick and easy. You can do this via our Call-N-Trade facility. 

All you need to do is call us on 022-61309998 / 022-71309998 and place your order bids by quoting the quantity and price at which you wish to buy the shares at. Please make sure you have sufficient funds in your account, to enable your order bid to be accepted by Upstox. In order to successfully place your order, you need to have your Call-N-Trade TPIN handy. You can find your T-PIN find here. 

Note: For IRCTC, the floor price is Rs 1,367 so remember to place your bids at or above this price. The cut-off price as determined on the first day of the IRCTC OFS (10 Dec 2020) for the general category is Rs 1377.55 per equity share. 

Effective 1st December 2020, the SEBI regulation regarding peak margins has changed the way sell amounts get credited from your Demat or T1 holdings. Here’s how it impacts you.

Selling a share from your Demat holdings

• 80% of the sell amount is available for trading on the same day
• The remaining 20% will be available for trading from T+1 day onwards
• 100% of the sell amount will be available for withdrawal from T+2 days onwards

Selling a share from your T1 holdings

• No Funds from the sell transaction will be available for trading on the same day
• 100% of the total sell amount will be available for trading only from T + 1 day onwards
• 100% of the total sell amount will be available for withdrawal from T + 2 days onwards

Here’s an example: 

Please note: In case there is a bank or trading holiday between the date of selling to T+2 day, the settlement period will be extended accordingly. 

A quick recap on what are T1 holdings

Any stocks that are still in transit between the Exchange and Upstox i.e. have still not completed the T+2 days settlement cycle will be listed under the ‘T1 Holdings’ tab on the Upstox web and mobile app.  This signifies that as of now, the stock has not yet been successfully credited to your Demat account. 

Wipro has declared a buy-back of its shares at Rs 400 and we’ve simplified the next steps for you! 

What is a buy-back and why should you opt for it?
It’s a corporate action where a company offers to buy-back its shares from the existing shareholders usually at a higher price than the market price. To learn more about a buy-back, click here.

What does this offer mean for Wipro shareholders?
Existing shareholders holding Wipro shares as on 11th December, 2020 (which is the Record date) can sell their shares back to Wipro for Rs. 400 by applying to their buy-back offer. Those who do not hold Wipro shares, can buy them by 9th December, 2020 at the current market price, to be eligible to apply for this buy-back.

How to apply for a buy-back?
Just follow these steps:

1. Login into keystone.upstox.com with your client code and backoffice password
2. Click on “Account” on the top of the header line
3. Click on “Buy Back/ Turnover” from the drop down
4. Click on “Apply” and enter the quantity
5. Submit the request 

Note: Non-POA holders will need to enter a valid pin to authenticate the buy-back via EDIS to proceed.

When can you apply?

The buy-back offer is yet not open for bidding.

To know more about the application procedure, read the circular here.

What to keep in mind while applying?

• You can only apply for this buy-back if you hold shares of Wipro in your demat account as on 11th December, 2020. In case you don’t hold them, your last date to buy them and be eligible for the buy-back is today, 9th December, 2020.
• You shouldn’t sell these shares on 10th or 11th December, 2020 if you’re interested to take part in the buy-back offer.
• After applying and offering your shares up for a buy-back, you cannot sell them in the market and modify or cancel your original bid.
• You can only sell these shares in the market If the company cancels the buy-back and you receive your shares back from the company.
• You will receive the buy-back amount for the shares from Wipro / Registrar & Transfer Agent (RTA) directly into your bank account (this will be updated in the records of the depository as well).
• All shares offered to Wipro for the buy-back might not be accepted. The number of shares that will be accepted will only be decided after the offer window closes. Those shares that are offered but not accepted by Wipro will be returned back to you in your Demat account.

That’s all about the Wipro buy-back! We will keep you updated on more info related to this offer, stay tuned.


Happy Trading,
Team Upstox.

PRICOL-RE | 750650 | INE726V20018

Pricol Limited 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 - 2 for every 7 shares held) at a discounted price of Rs.30.

Pricol Limited will issue Right Entitlements (REs) to anyone who holds its shares as on record date 25th November, 2020. These REs will be temporarily traded on the exchanges and then get deactivated. You can 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 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 - 25th November 2020. The date before which you need to have shares in your demat to receive RE benefit
Last trading day of RE  - 11th December 2020. If you do not wish to subscribe, you can sell the RE online on or before 11th December 2020.

Subscription close date - 17th December 2020. The date by which you need to subscribe after which the RE ceases to exist. 

Note: If you do not take any action, you would forfeit your rights allowing them to expire, bringing their value to Rs. 0.

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.integratedindia.in/ and choose Pricol
2. Then choose ‘Apply for Right Issue and Payment’
3. Select below declarations:
4. Select below eligible options:
a. If you hold the shares on Record date, select first option “SHAREHOLDER”
b. If you bought RE shares in the open market, select second option “RENOUNCEE”
c. Fill in your DP ID Client ID (check details below on how to find your DP details), and other details
5. Click on ‘Email & Mobile No.’
6. Pay for your order using UPI or NEFT

You can find your DP and Client ID with these steps -
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 a screen similar to the one below
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 last 8 digits is 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, read the circular here.

To know more about FAQs on Rights Entitlement Trading visit below links:
1. FAQs by the NSE

2. FAQs by the BSE

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.