Tuesday, July 28, 2009

How to Apply Rights Issue Using ATM

Just recently I had the chance to apply for Rights Issue using the ATM (DBS) so I thought it would be good to note down that it's actually quite an easy process.

In your rights offer document, there will be a page stating which ATMs you can use to apply for the rights units. If it is not stated, that means the only way to apply is through the banker's draft/cashier's order.

You will just need to take note of the following 3 things before going to the ATM, other than knowing which rights issue are you applying for:
  1. How many rights units are you entitled to
  2. How many excess rights units are you going to apply for
  3. What is your CDP No (optional)

Note that the application for rights issue is only available at the ATM Mon - Sat, up to 9.30pm. I didn't know about that until I tried to access it outside this timing.

The following are some of the steps I recalled at the ATM:
  1. Go to the "Other Services", Electronic Shares Application (ESA) section. There should be an option for rights issue.
    Note that you will have to go through several disclaimer screens after that.

  2. Choose the type of bank account you're deducting the cash from.

  3. Choose the rights issue you're subscribing to. The cost of the rights units will be automatically displayed.

  4. Key in the total number of rights units you're entitled to (e.g. 1000).
    Note that this is the total number of units, not board lot.

  5. Key in the number of excess rights units you're subscribing to (e.g. 1000).
    Note that this is the total number of units, not board lot.

  6. At this point, they will show you your NRIC and CDP No, and you can choose to re-key your CDP No. if it is incorrect.

  7. Confirm the total number of rights units you're subscribing to, and the total amount that it will deduct.

That's all to it. The cash will be deducted immediately from the bank account that was selected. Note that for DBS, there's a $2 transaction fee.

The main thing you'll have to remember is the number of rights units you're entitled to. The CDP No is not even necessary as I believe that they are able to access the CDP information using your NRIC No that is linked to your ATM bank account.

Simple isn't it?

1 comment:

Unknown said...

Thanks for the information. Now at least I know what to expect and do when I use the ATM to apply Rights Issue.

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