NATCO Pharma's rights entitlements (REs) were traded on BSE Ltd, formerly the Bombay Stock Exchange, is a Mumbai based electronic exchange where shares and other securities are traded under SEBI oversight. Read the full meaning of BSE (Bombay Stock Exchange) from 12 to 16 October 2026, in a market lot of one RE, while the rights issue itself stayed open from 12 to 22 October. Investors who wanted to pass on their entitlement could sell it on the exchange only during the trading days, but they could also transfer it off-market until the issue closed.
An RE is the right given to an existing shareholder to apply for new shares of the company. Rights issue renunciation means handing that right over to another investor, either fully or in part, instead of using it.
Under SEBI is the statutory regulator of India's securities market, with the legal duty to protect investors and to promote and regulate that market. Read the full meaning of SEBI circular of January 2020, REs are credited to demat accounts only and the Master Circular of 11 November 2024 is now the governing framework.
How REs change hands
Holders of REs can renounce them in two ways. One is to sell the REs on the exchange platform, and the other is to transfer them off-market from one demat account to another. SEBI Investor Education material shows that trades in REs will settle on a T+2 basis.
Renunciation can cover the full RE or only a part of it. The REs can go to an existing shareholder or to an outsider and the transfer can be made for payment or without any payment.
Exchange trading in REs opens on the issue opening date. As per the SEBI circular of 2020, as amended, it must close at least three working days before the rights issue closes, so the trading window is always shorter than the issue period.
Under the revised framework, the letter of offer has to spell out how the REs are credited and how renunciation will work for that issue.
Where the deadlines bite
REs that are neither subscribed nor renounced by the closing date of the issue will lapse and they are extinguished after that date. An unsubscribed RE does not stay in the demat account as a dormant asset.
For off-market transfers, the REs must reach the renouncee's demat account on or before the closing date. Dhariwal Corporation's filing on A regulated electronic marketplace in Mumbai where buyers and sellers trade shares and other securities at publicly visible prices. Read the full meaning of NSE (National Stock Exchange) for its March 2026 issue had 13 March as the last renunciation date, while the issue closed on 18 March. The rights issue can remain open for at most 30 days from the opening date.
Jindal Capital's rights issue has a ratio of 3 for 2, with a record date of 6 November 2026. Jindal Capital allows on-market renunciation till 26 November 2026 and off-market transfer till 30 November 2026, and the issue closes on 1 December 2026, as per a Multibagg report of 2 November. Each issue sets its own window in the letter of offer, so the reported dates have to be read against that document.
