Nil Paid shares (NPD or Nil Paid Rights) are issued in a Rights Issue to show your entitlement to buy new shares at a set price. If you wish to buy more shares in the Company because you think the offer is attractive, you will be debited with the Total Call Cost and the new shares will be added to your account. At the same time, the Nil Paid Shares will be removed. Alternatively, you can sell your Nil Paid rights in the market to allow somebody else to take up the offer. This sale is treated the same as any other trade and is subject to the usual dealing commission charges. The third option is to do nothing, or lapse your rights. If you do this, you may be entitled to a Lapsed Rights Premium by the Company. This is a set amount of money paid for every Nil Paid Share that you lapse. This payment is not guaranteed.
