How to renounce a rights entitlement on Zerodha

Sun, 21 Jun 2026 00:00:00 +0000

To renounce a rights entitlement is to sell or transfer the right to subscribe to a rights issue instead of subscribing yourself. When a listed company makes a rights issue, every eligible shareholder receives a rights entitlement (RE), a tradeable instrument credited to the demat account as a separate ISIN and symbol, representing the right to buy new shares at the issue price. If you do not want to put more money into the company, you do not have to let that right go to waste: you can sell the RE on the exchange through Kite or transfer it off-market to a named buyer, and capture its value. This guide is for a Zerodha client who holds REs and wants to renounce rather than subscribe.

Renunciation on WebNotes

How to renounce a rights entitlement on Zerodha