Recently, there had been a lot of Rights issue and I would like to remind you to be careful about any technicalities if you are subscribing to them. Below is the text of an email I received from one of my readers.
Recently, I used the ATM to execute 3500 of Capitaland Rights Issue offered to me at $1.30. Thinking that I am assured of getting this shares, I decided to sell- of 4000 of Capitaland shares I already held at $1.90 (which I bought above $6).
However to my horror, I later discovered that I was not alloted the rights issue as I had inadvertently accepted my individual CDP acct for the ATM transaction. I was told the offer was for my joint account acct and my transaction was therefore rejected. The CDP staff told me its my mistake & there’s nothing they can do. My broker at iOCBC told me he heard of a similar case.
To me there is a “Murphy” in the system. I wonder if you know of a recourse & how I can make sure this doesn’t happen to others.
This is obviously a case of an honest mistake but unfortunately, there is limited recourse available.
Another example of a “strikeout” that could occur is if you use a joint-bank account to subscribe and you didn’t use the atm card issued in your name.
When in doubt, always consult your stock broker or call the hotline given by the company.
Even though you can adopt the spirit of “Let’s move on, it was an honest mistake“, ultimately you will still have to bear whatever financial losses that results from it.