2. Who is eligible to receive Rights Entitlements?


You are eligible to receive Rights Entitlements (RE) in your demat account if you hold the company’s shares on the record date (cut-off date to decide on the list of eligible shareholders). 

Important points: 

  • All types of investors can be eligible — retail investors (like you and me), HNIs, mutual funds, foreign investors, promoters — if they hold the shares on the record date. 
  • RE is given in proportion to the shares you own. 
  • If you buy the company’s shares after the record date, you won’t get RE.
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