Knowledge Base

Different corporate actions affect your holdings in different ways and some change the number of shares you hold, some affect the price, and some do both.

Bonus Issue – Your share count increases in the ratio announced (e.g., 1:1 means one extra share for every share you hold). The stock price adjusts downward proportionally, so the total value stays the same initially.

Stock Split – Similar to a bonus issue in effect. Your share count multiplies, and the price per share drops proportionally. No change in overall holding value.

Dividend (Cash) – Your share count stays the same. The declared amount is credited to your linked bank account on the payment date. The stock price typically drops by the dividend amount on the ex-dividend date.

Rights Issue – If you subscribe, your share count increases. If you don’t, your holding remains the same but your ownership percentage in the company reduces slightly as new shares are issued to others.

Buyback – If you participate, the tendered shares are removed from your DEMAT and cash is credited to your bank. If you don’t participate, your share count stays the same but your percentage ownership in the company increases slightly.

Merger or Acquisition – Your existing shares are typically replaced by shares of the merged entity in a set swap ratio. In some cases, you may receive cash instead.