Upcoming Rights Entitlements: August 2024
1 min readWhen a company announces a Rights Issue, they invite existing shareholders to buy more shares, usually at a discounted price. These shares are known as Rights Shares. After the Rights Issue is announced, the company credits its existing shareholders’ Demat Accounts with something called REs (Rights Entitlements). These REs are also listed on the exchange and can be traded.
IMPORTANT TO NOTE: REs are not the actual Rights Shares. Once you buy or get REs allotted to you, you need to apply for the Rights Shares in the following ways:
- – Online through ASBA (Applications Supported by Blocked Amount) if your bank supports it just like you do for an IPO
- – Online through the RTA (Registrar and Transfer Agent) website https://rights.integratedindia.in/
- – Offline by filling the Composite Application Form (CAF) received in your courier from the company’s RTA and then submitting it at a Self Certified Syndicate Banks (SCSBs) branch.
The 3 companies which have listed REs in August 2024 are:
REs will exist as temporary Demat securities in your account. If they are not used to apply for Right Shares or traded, they will lapse.
To learn more about rights, click here.
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