What is rights entitlement trading?

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The rights entitlement trading is a special trading platform of the stock exchange introduced by SEBI where one can sell their rights entitlement to other interested investors in case one is not willing to subscribe to their rights.

The RE trading platform is aimed to bring in efficiency and transparency in the rights issue process. Moreover, it offers a better opportunity for the shareholders to sell their rights at a better price rather than let it lapse.

Topic: Rights Issue Entitlement - Explained with Examples Article

1 Comments

1. Susheel

| Link|February 12, 2021 3:57:04 PMReply

I have a RE on 114 shares. Over that I bought 386 shares to make them 500. Later, I sold 350 out of the 500 to make the count as 150 in the demat.
What will happen to these 150 shares?

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