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 average price per share decreases proportionally to the split ratio. For example, in a 1-for-2 split, the cost per share is halved, and the number of shares is doubled.
• P&L Impact: The overall P&L (Profit and Loss) is not directly impacted by the split itself, as the total investment value remains the same. However, the P&L calculations for future transactions will be based on the adjusted average price.

Example of Split Corporate Action

Corporate Action Details:

 

CA	Ratio 1	Ratio 2	Ex-Date	Symbol
Split	1	2	03/05/2018	ACC

Transaction Sample Details:

 

Transaction Number	User	Security Code	Date    of Transaction	Type   of Transaction	Quantity	Price	Value	Balance Qty	Remarks
110012	NB	ACC	05/03/2018	Buy	2000	1500	3000000	300
110013	NB	ACC	25/3/2018	Sell	1500	1510	2265000	0
110014	NB	ACC	26/3/2018	Sell	200	1520	304000	0
110015	NB	ACC	29/3/2018	Buy	500	1480	740000	500
110016	NB	ACC	04/04/2018	Buy	500	1400	700000	500

Post-Split Transaction Details View for Client:

 

Trxn Number	User	Symbol	Date    of Transaction	Type   of Transaction	Quantity	Price	Value	Remarks
110012	NB	ACC	05/03/2018	Buy	2000	1500	3000000
110013	NB	ACC	25/3/2018	Sell	1500	1510	2265000
110014	NB	ACC	26/3/2018	Sell	200	1520	304000
110015	NB	ACC	29/3/2018	Buy	500	1480	740000
110016	NB	ACC	04/04/2018	Buy	500	1400	700000
110017	NB	ACC	03/05/2018	Buy	1300	0	0	CA Split

Scenario: Selling 2500 Shares on 21/05/2018 @ ₹790

• The system will square off the shares as follows:
• 600 shares @ ₹750 (remaining from the first transaction with split)
• 1000 shares @ ₹740 (second buy transaction with split)
• 900 shares @ ₹700 (third buy transaction with split)

Gain/Loss Summary Details for Client:

 

Client	Scrip	Qty	Buy Date	Buy Price	Sell Date	Sell Price	Gain/Loss
NB	ACC	1500	05/03/2018	1500	25/03/2018	1510	15000
NB	ACC	200	05/03/2018	1500	26/03/2018	1520	4000
NB	ACC	600	05/03/2018	750	21/05/2018	790	24000
NB	ACC	1000	29/03/2018	740	21/05/2018	790	50000
NB	ACC	900	4/4/2018	700	21/05/2018	790	81000

Open Quantity Summary Details for Client in Valuation:

Client	Scrip	Qty	Average Price	Average Value	LTP	Unrealised Gain/Loss
NB	ACC	100	700.00	70000.00	790.00	9000

Summary

When a split corporate action is credited, the average price per share is reduced proportionally to the split ratio. This ensures that the overall value of the holdings remains unchanged, but the price per share is adjusted to reflect the increased number of shares. The P&L calculations will be based on the new average price, showing no direct impact from the split itself but affecting future P&L calculations based on the adjusted share price.