What to Do with Rights Entitlement (RE) Shares

When Rights Entitlements (REs) are credited to your demat account, they represent your right to apply for new shares in the rights issue — not actual shares themselves. You generally have three options:

1. Apply for the Rights Shares

• Use your REs to apply for new shares at the issue price before the rights issue closes.
• Once allotted, the new shares will be credited to your demat account and can be traded like regular shares.

2. Sell the REs (Renounce Your Rights)

• If you don’t wish to invest more money, you can sell your REs on the stock exchange (if the issue is renounceable) during the trading window.
• The buyer (renouncee) can then use those REs to apply for the shares.

3. Do Nothing (Let Them Lapse)

• If you neither apply nor sell your REs before the issue closes, they will expire worthless after the closing date.
• You’ll lose the opportunity to buy shares or earn from selling your entitlement.

Always act before the issue closing date — either apply or sell. Once expired, REs hold no value and are automatically removed from your demat account.