Rights Issues & NCDs 2026

A listed company offers new shares to its existing shareholders, in proportion to what they hold (for example 1 new share for every 5 held), usually at a discount to the market price. You need to hold the shares on the record date to get the rights entitlement (RE).

Rights entitlements are credited to your demat and can be traded on the exchange during the renunciation period. If you neither apply nor sell them, they lapse and have no value — and your holding gets diluted.

Non-convertible debentures are bonds sold by companies to the public for a fixed tenure and coupon (interest). They are listed on the exchange after allotment. Check the credit rating — a lower rating means higher risk of default.