What is a rights entitlement?

Rights Entitlements (REs) are temporary demat securities given to shareholders to show they’re eligible to participate in a rights issue. The number of REs you receive depends on how many shares you held on the record date and the rights issue ratio. Example :If the rights issue ratio is 1:5, it means you get 1 RE for every 5 shares you hold on the record date. So, if you hold 50 shares, you will receive 10 REs.

  • You will receive REs in your demat account only if you are holding that company’s shares on the record date. ( On Share.Market app you can find them in Portfolio>All Holdings tab they would appear as “stockname – RE”)
  • If you are not holding the shares on the record date, you will not receive REs automatically.
  • If you didn’t receive REs, you can still participate by buying REs from the market (if they are available for trading) and then using them to apply for the rights issue.