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Article / GuideIPO

All you must know about Rights Entitlement

Last updated August 22, 2026

This IPO News guide/article covers “All you must know about Rights Entitlement”. The page is organized around what is rights entitlement?, how are rights entitlement re credited to your demat account?, 1. credit of rights entitlements to existing shareholders, 2. credits of rights entitlement to non-shareholders, renunciation of rights entitlement. IPO News presents the structured facts and tables in its own layout and wording.

Topics Covered

  • What is Rights Entitlement?
  • How are Rights Entitlement RE credited to your Demat Account?
  • 1. Credit of Rights Entitlements to Existing Shareholders
  • 2. Credits of Rights Entitlement to Non-shareholders
  • Renunciation of Rights Entitlement
  • Trading (Buy and Sell) Rights Entitlement
  • Why Rights Entitlement or the importance of RE
  • Rules to Buy and Sell RE
  • Timeline for trading in Rights Entitlement
  • Impact of Rights Entitlement on the stock price
  • What happens to Rights Entitlement, if not used?
  • Wrapping up
  • Zerodha Trade@20
  • Compare Stock Brokers Side-by-Side

Key Facts

  • India's trusted financial research platform since 2015. Live IPO GMP, subscription data, allotment status, Rights Issues, NCDs and unbiased stock broker reviews.
  • For subsequent trading days, the RE closing price will be the base price.
  • A 100% upfront margin is required because intraday trades (MIS) are not allowed in rights entitlement.
  • Lot size will be 1 share i.e., investors can buy and sell 1 rights entitlement.
  • BL series is for Block Deals that are used for bulk orders trading, of a minimum of 5 lakh shares.
  • Want to start your investment journey? Join India's Pioneer Discount Broker – ZERODHA – Free Delivery Trade, Maximum Rs 20 for F&O and Intraday, Free Direct Mutual Fund investment.

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