What is Right Entitlement ?

Right Entitlement (RE) is the right given to existing shareholders to buy additional shares of a company at a fixed price.

The company offers this right to shareholders who hold shares on the record date, in a specific ratio (for example, 1:5).

A shareholder has three choices:

A) Subscribe to the rights issue and buy the shares

B) Sell/renounce the entitlement to someone else for a price

C) Do nothing, in which case the entitlement will lapse

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What will happen if Right Entitlements (REs) are purchased through on market renunciation / Off market renunciation, and no application is made for subscribing the shares / other securities offered under Right issue?
Those Right Entitlements (REs) will be lapsed and investor shall not get any shares.
What happen to Right Entitlements which are neither subscribe nor renounced on or before the issue closing date ?
Rights Entitlements (REs) which are neither subscribed nor renounced on or before the Issue Closing Date are lapsed post closure of the issue and the ISINs linked to these REs shall stand suspended.
Where client can check the brokerage applicable for his/her account ?
Login to our website https://markets.iiflcapital.com/home ; Click on the dropdown arrow at the top right corner > Reports > Charges and Bills > Brokerage & VAS Plan.
What are Rights Issue?
A Rights Issue is a way for a company to raise funds by offering new shares to its existing shareholders. In a rights issue, shareholders are given the right to buy additional shares of the company at a fixed price, usually lower than the market ...
How to download Client Master List (CML)?
Digitally signed Client Master List can be downloaded by logging in to the website below. https://markets.iiflcapital.com/home >> Login >> Click on the dropdown arrow at the top right corner >> Reports >> Under DP related >>CML report.

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