RE Awareness
Information to help investors stay aware of regulatory requirements, risk disclosures and safety practices while using online trading platforms.
Important notice
Stay alert against fraud
This page covers fraud awareness, phishing protection, and Rights Entitlements (REs) in rights issues.
Quick highlights
Verify
SEBI registration
Protect
Never share OTP
REs
Rights entitlements
Resolution path
Unregulated
Verify intermediaries
Phishing
Never share OTP/PIN
Rights Issue
Understand REs
Stay Aware
Regulatory Awareness for Investors
This page covers key awareness topics including how to identify fraud, protect yourself from phishing, and understand Rights Entitlements (REs) in rights issues.
Key topics for investors
Fraud alerts, phishing protection, and Rights Entitlements explained.
Section 1
Be Aware of Unregulated Entities
Always verify SEBI registration before transacting with any financial intermediary.
Trade only through SEBI‑registered intermediaries (brokers, depository participants, investment advisors, etc.).
Avoid dealing with unregistered Telegram channels, WhatsApp groups or social media handles promising easy profits or managed accounts.
You can verify registration details of intermediaries on SEBI, exchange and depository websites.
Section 2
Beware of Frauds & Phishing
EZ Wealth will never ask for your password, OTP, UPI PIN or full card details via phone, SMS or email.
EZ Wealth will never ask for your password, OTP, UPI PIN or full card details on phone, SMS or email.
Do not install screen‑sharing or remote‑access apps on the instructions of unknown callers claiming to be from EZ Wealth, banks or regulators.
Immediately report any suspicious request or transaction to help@ezwealth.in.
Section 3
Rights Entitlements (REs) — Key Points for Investors
When a company comes out with a rights issue, you may receive Rights Entitlements (REs) in your demat account or buy REs on the stock exchange platform. It is important to understand how REs work and the actions you must take, otherwise the REs can become worthless after the issue closes.
What is a rights issue and what are REs?
- A rights issue is a corporate action where a company invites existing shareholders to apply for additional shares in proportion to their holdings, typically at a discounted price. The company prepares a list of eligible shareholders based on shareholding as on the record date (RD).
- Eligible shareholders receive Rights Entitlements (REs) in their demat account before the opening of the rights issue.
- REs are not ordinary equity shares but a type of coupon/voucher that can be used to apply for the rights shares. REs are credited in a ratio to the number of shares held on the record date.
- A shareholder may choose to apply for the rights shares, renounce (sell) the REs, or let the rights lapse. Application for a rights issue is generally made through the ASBA facility.
A) When you receive REs based on your existing holding
If you are holding shares in a company as on the record date, REs will be credited to your demat account as per the company specified ratio. You can then:
- Apply in the rights issue by submitting an application to the company and paying the requisite application money; or
- Renounce (sell) the REs before the issue closing date.
The trading window for rights renunciation using the exchange's trading platform is available only for a limited period (maximum ~2 weeks) and usually closes a day or two before the rights issue closing date. If you do not apply nor renounce, the REs will lapse and become worthless.
B) When you buy REs on the stock exchange platform
Any investor who wishes to apply for a rights issue may also buy REs when they are listed for trading (renunciation) on the stock exchange.
- REs should not be confused with actual equity shares of the company. They generally trade at a price lower than the stock price because that price represents the premium a buyer is willing to pay to participate in the rights issue at a discounted price.
- When you buy REs, they will be credited to your demat account on the settlement day. Thereafter, you can apply in the rights issue by making an application and paying the requisite application money, or renounce (sell) the REs before the issue closing date.
The trading window for rights renunciation on the exchange is available only for a limited period and typically closes shortly before the rights issue closes. If you neither apply using the REs nor sell them on or before the issue closing date, the REs will lapse and become worthless.
For investor awareness resources, visit sebi.gov.in or contact us at help@ezwealth.in
Stay informed, stay protected
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