What happens if I buy/receive REs but don't apply for rights shares?

If you buy or receive Rights Entitlements (REs) but do not apply for the rights shares, the REs will expire once the issue closes. REs are not actual shares; they only give existing shareholders the right to purchase new shares at a discounted price. If you neither apply for the shares nor sell the REs in the market, they will lapse.

Once the process is completed, the temporary REs will be debited from your Demat account. If you purchased the REs, the amount paid will be lost, as they will not convert into shares unless you apply before the deadline.