Yes. In a spin-off, shares of the newly formed company are credited to your DEMAT account automatically and you don’t need to apply or take any action.
The company announces a ratio that determines how many shares of the new entity you’ll receive based on your holding in the parent company as of the record date. A 1:1 ratio means one share of the new company for every share you hold in the parent.
If the ratio results in fractional shares, companies typically pay out the fractional portion in cash rather than crediting partial shares to your DEMAT.
The new company’s shares are credited once the spin-off is effective and the new entity is listed on the exchange. The timeline varies depending on regulatory approvals and the listing process.
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