Corporate Actions
Bonus, mergers, stock splits and more
When a company announces a rights issue, eligible shareholders receive Rights Entitlements (REs) in their demat accounts.
🔹 These REs grant the option to purchase additional shares at a discounted price.
🔹 REs are temporary and tradable on the stock exchange until the renunciation date, which is typically a few days before the rights issue closes.
🔹What Happens After the Renunciation Date?
❌ After this date, REs are suspended from trading and will no longer appear in your portfolio.
✅ If you choose to apply for the rights shares, the REs will be debited from your demat account upon allotment.
⚠️ However, if you neither apply for the rights shares nor sell the REs before the application deadline, the REs will lapse and be removed from your holding.
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