Rights Entitlement

Stocks
1

Hello,
Can anyone help me to understand the following issue:
I have been allotted Rights Entitlement share qty. It is showing in my trading account (still not applied for it). But on Rights Entitlement trade to trade window I purchased more share in discounted price (as per CMP). My question is shall I avail these shares through RE procedure or I have to sell those within stipulated time period.

Thanks

2

If you wish to apply for rights shares you can do so. The allotment of rights shares is guaranteed upto the extent of REs held, irrespective of you recieving REs from company or buying them from market.

However, if you do not wish to apply for right shares, you can sell the REs before trading window closes. Else, you will lose all the money paid to purchase these.