Fractional entitlements or shares are shares of equity that are less than one standard lot’s. Fractional shares usually arise from stock splits, rights issues or similar corporate actions. Certain corporate action events may result in fractional shares.
For such event, your share entitlement will be rounded down to the nearest 1 share. For example, entitlement of 10.98 units of share; CDS account will credit 10 units of share and 0.98 units will receive cash in lieu by credit back to your cash account.