Help Center
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.
Was this helpful?