The RE will be checked on the date of allotment not on the date of application. So if you apply and then sell RE, you don’t get assured allotment. Yes, you may still get some shares in case of under subscription.
Cost of RE is added with you are buying REs from market. Eg. In case you are applying for rights issue because you want to invest in the company… Say you have 10 RE given by the company but you want to buy 100 shares. So either you apply 10 right shares and buy rest 90 from open market OR you can buy 90 REs and get 100 rights alloted by the company and get the share cheaper by about 2% (in this case).
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