A rights issue is a corporate move that allows existing shareholders of a company to buy additional shares in proportion to their current holdings, usually at a discounted rate. Shareholders who qualify will find right entitlements (REs) in their demat accounts. These REs can be used to apply for the rights issue or traded on the market. It’s important to note that if these REs are neither sold nor used for the rights issue, they will expire and lose their value.
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