General Queries
What is the impact of a bonus issue on equity holdings and F&O positions?
A bonus issue occurs when a company gives extra shares to its existing shareholders for free. Let's examine how this affects your equity holdings and futures and options (F&O) positions. Impact on Equity Holdings When a bonus issue occurs, the share ...
What is a Bonus issue?
A bonus issue is when a company distributes additional shares to its existing shareholders for free. This is often done as an alternative to paying out dividends. While the number of shares a shareholder owns increases, the total value of their ...
What is the maximum allowed bid quantity for retail OFS bids?
For retail investors participating in an Offer For Sale (OFS), the maximum bid amount is capped at ₹2 lakhs. The number of shares you can bid for depends on the cut-off price set for the OFS. Here’s how it works: 1. Bid Limit: Retail investors can ...
Can retail investors apply for an OFS below the cut-off price?
Retail investors cannot apply for an Offer For Sale (OFS) below the cut-off price. According to circulars from both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), retail investors are required to place their bids at the ...
Why was the OFS allotment not received even though the request was placed before the cut-off?
Allotting shares in an Offer For Sale (OFS) is determined by the stock exchanges, not your broker. Here’s how it works: 1. Cut-Off Price Determination: The cut-off price for the OFS is set based on the bids received from non-retail investors, which ...
What is an Offer For Sale (OFS)?
An Offer For Sale (OFS) is a method that allows a company's promoter to sell their shares to both institutional and retail investors through stock exchanges. This process enables the promoter to reduce their stake in the company, allowing investors ...
What are dividends?
Dividends are a portion of a company's profits that are paid out to its shareholders. When a company makes a profit, it has two choices: it can either reinvest those earnings back into the business or distribute them to shareholders as dividends. The ...
What is consolidation of shares?
Consolidation of shares, also known as a reverse stock split, is a corporate action where a company reduces the number of its outstanding shares by combining them and increasing the face value of each share. This process is also referred to as a ...
Why was my dividend credited to Ledger instead of crediting to my bank account?
If you noticed that your dividend was credited to your ledger instead of directly to your bank account, it might be due to one of the following reasons: 1. Pledged Stocks: If you have pledged your stocks with 5Paisa for F&O (Futures and Options) ...
How to apply for RIGHT ISSUE if shares are in 5paisa pool/Margin account?
Have a look at the following step-by-step guide: For Shareholders: Check Right Entitlement (RE) Shares: If you hold shares in your Demat Account as of the Record Date, you will see your Right Entitlement (RE) shares credited to your account. Decide ...
Why were the shares not eligible for corporate action benefits even though they were purchased before the ex-date?
To be eligible for corporate action benefits (like dividends, bonuses, or stock splits), investors must have the shares credited to their demat accounts on or before the ex-date or record date. Here are the reasons why shares purchased before the ...
What is the impact of mergers and spin-offs on shares?
Mergers and spin-offs can significantly affect a company's shares. Here's how: 1. Mergers: o Definition: A merger occurs when two companies combine to form a single entity. o Impact on Shares: Shareholders of the acquired company typically receive ...
How is a follow on offering different from an initial public offering (IPO)?
Understanding the differences between a Follow-on Public Offering (FPO) and an Initial Public Offering (IPO) is crucial for investors. Here’s a clear breakdown: 1. Definition: o IPO (Initial Public Offering): This is when an unlisted company offers ...
Should you subscribe to an FPO?
Deciding whether to invest in a Follow-on Public Offering (FPO) can be a smart move, especially compared to investing in an Initial Public Offering (IPO). Here’s why: 1. Familiarity with the Company: Unlike an IPO, where the company is new to the ...
What happens in an FPO?
In a Follow-on Public Offering (FPO), a company issues additional shares to the public. Here’s what typically happens during an FPO: 1. Issue Price: The company often sets the issue price for the new shares lower than the current market price. This ...
Why does a company need an FPO?
A company usually conducts a Follow-on Public Offering (FPO) to raise additional capital. This is typically done through a dilutive FPO, where new shares are issued to generate new funds. Here’s why a company might need an FPO: Raise Additional ...
What is an FPO (Follow-on Public Offering)?
A Follow-on Public Offering (FPO) is a method by which companies that are already listed on the stock exchange issue additional shares to the public. This is different from an Initial Public Offering (IPO), where a company offers its shares to the ...
What should be done if someone missed applying for a delisting?
If you missed applying for delisting, don’t worry. You can still sell your shares directly to the company. Here’s what you need to do: 1. One-Year Period: You have one year from the date of delisting to sell your shares back to the company. 2. Tender ...
What does delisting mean?
Delisting occurs when a company permanently removes its shares from a stock exchange, making them unavailable for buying and selling on platforms like the NSE and BSE. The Securities and Exchange Board of India (SEBI) oversees this process. Here’s a ...
What is a fractional share?
A fractional share is a portion of a stock that is less than one full share. This usually happens due to corporate actions like stock splits or issuing bonus shares. Here’s an easy explanation: 1. Definition: Fractional shares are parts of a whole ...
Are shareholders eligible for corporate action benefits if the shares are sold on the ex-date/record date?
Yes, shareholders are still eligible for corporate action benefits even if they sell their shares on the ex-date or record date. Here’s why: Eligibility Criteria: To receive benefits from corporate actions, such as dividends or bonus shares, you must ...
What is the book closure date?
The book closure date is a crucial date for shareholders. It is the deadline by which you must own shares in your demat account to be eligible for certain corporate benefits, such as bonus shares, stock splits, and dividends. Here’s a more ...
How to check ESOP Shares?
Employee Stock Option Plan (ESOP) shares are company shares granted to employees as part of their compensation package. These shares often come with a lock-in period, which means you can only sell them once this period ends. However, you can still ...
How can Corporate Actions be checked via NSE/BSE?
Corporate actions, such as bonus issues, dividends, rights issues, spin-offs, and stock splits, can be checked and verified on the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) websites. Here are the step-by-step instructions to help ...
Will eligibility for corporate action benefits be affected if stocks are pledged with 5Paisa?
If you have pledged your stocks with 5Paisa, you will still be eligible for corporate action benefits, such as dividends or bonus shares. The critical point is that the stocks must be in your Demat account by the record date. So, even if your stocks ...
What do record date and ex-date mean?
Record Date: The record date is the cutoff date set by a company to determine which shareholders are eligible for specific corporate actions, such as receiving dividends, rights shares, or bonus shares. If you own shares in your account on the record ...
How are average price and P&L impacted if split corporate action is credited?
When a stock split occurs, the number of shares increases while the price per share decreases proportionally. This does not affect the total value of your holdings, but it does impact the average cost per share. Explanation: Average Price Impact: The ...
Can I get corporate action benefits for Futures and Options (FnO)?
In most cases, corporate action benefits such as dividends, bonus shares, or rights issues are not applicable to futures and options (F&O) contracts. This is because futures and options contracts are derivative instruments that derive their value ...
Will I be eligible for corporate action if I purchase shares on debit?
Whether you are eligible for a corporate action if you purchase shares using debit (funding) depends on the specific corporate action and the terms associated with it. In many cases, eligibility for corporate actions is determined based on the ...
Whom should I reach out to if I don't receive corporate action benefits despite being eligible as per the record date?
If you are eligible for corporate action benefits as per the record date but have not received them, you should first reach out to the company's Registrar and Transfer Agent (RTA). The RTA is responsible for maintaining the records of shareholders ...
What is difference between Stock Split and Bonus Issue?
Below is the detailed view about the difference between Stock Split and Bonus Issue- Basis Stock Split Bonus Issue Meaning Already owned shares split into smaller shares. Free additional shares given to existing shareholders based on no. of shares ...
How does the split shares calculation works at 5paisa?
The calculation for stock splits involves dividing existing shares into multiple shares, usually with the aim of increasing the liquidity of the stock and making it more affordable for investors. Here's how the process typically works: Ratio ...
What is the mechanism behind a stock split, and how long does it typically take for the split shares to be credited to my 5paisa Demat account?
A stock split is a process in which a company increases the number of its outstanding shares by proportionally reducing the share price. This makes the stock more affordable for investors while maintaining the overall market capitalization of the ...
How does the bonus shares calculation works?
The calculation for bonus shares involves distributing additional shares to existing shareholders at no cost. The calculations is determined by a predetermined ratio announced by the company. Here's how the calculation usually works: Bonus Ratio ...
How does the process of receiving bonus shares work, and how many days does it typically take for the bonus shares to reflect in my Demat account?
After a company announces a bonus issue, it generally takes around 15 to 30 days for the bonus shares to be credited to your Demat account. This timeline can vary based on factors like the company's processing procedures and regulatory requirements. ...
When will I receive the dividend amount at 5paisa?
You will receive the dividend amount according to the dividend payment schedule provided by the company. Typically, dividends are disbursed after the company's Board of Directors approves the dividend and the relevant dates, such as the record date ...
What are Corporate Actions?
Companies periodically announce corporate actions like Bonus, Split, Mergers which will have an impact to the holdings. In the portfolio computation logic, system applies the corporate action effect as announced by the company. Read more about ...