What is rights entitlement?

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Rights entitlement is the credit of temporary shares in the Demat account of eligible shareholders that entitles the shareholders to apply for rights issue share at a discounted price within a specific period.

A shareholder not wanting to exercise his rights to apply for rights can also renounce or transfer the entitlements to other interested investors through trading or off-market mode. In case, no action is taken by the required date, the rights entitlement lapses.


1. Nagappan RM   I Like It. | Report Abuse |   Link | Sep 30, 2021 7:48:28 PM Reply
Having demat shares allocated.How to apply for rights entitelment. Having trading account. Got rights entitelment in demat allocation. How apply and get my entitelment.....