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    What is renunciation of rights entitlements?

    The renunciation of rights entitlements is the process of renouncing or transferring or selling the rights to other interested investors at a better price.

    When a shareholder is not interested in the rights entitlements offer given by the company, he can choose to renounce his rights rather than let it lapse. The renunciation of rights entitlements can happen either by way of rights entitlement trading or off-market transfer.

    There are two ways of renunciation:

    1. On-Market Renunciation - This is the rights entitlements trading platform of the stock exchange wherein the rights can be renounced on the exchange floor at a better price. The on-market renunciation can happen only till the last date of the rights entitlement trading which is generally 3-4 working days before the issue closing date.
    2. Off-market renunciation - In this case, the interested buyer and seller can mutually agree on the price and complete the renunciation off-market. The off-market renunciation can be done until the issue closure date however it should be done in such a way that the renounce has sufficient time to apply for the rights issue before the issue closure date.
    What is Right Issue of shares? How to apply in Rights Issue? What are the advantages of right issue? How do I renounce my rights? What will happen if a customer neither apply in rights issue nor renunciate his rights? Where can I check the upcoming Rights Issue? Can a corporate account customer apply in rights issue online? Is it Good to buy rights issue shares? Does share price fall after Rights issue? Can I modify my rights issue order? All you need to know about Adani Enterprises Ltd. Rights issue