A rights issue is another way to raise capital by corporates from existing shareholders by offering them additional shares in proportion to their current holdings, usually at a discounted rate. Shareholders who qualify will find right entitlements (REs) Shares allotted in their demat accounts. These RE's are also listed temporarily on the exchanges to assist shareholders who do not want to acquire new shares to sell these entitlements in the markets.  These REs can be used to apply for the rights issue or traded on the market. It's very important to note that if these REs are neither sold nor applied by ASBA route, will expire and lose their value.  So it's very important to ensure that you apply for the Rights within the Rights Issue closure date in case you have not sold the RE in the exchanges. 

Learn more about Rights issue in our detailed article on Jiniversity.

To know more, please connect with our support team by writing to us at help@tradejini.com.