You can track all upcoming and ongoing corporate actions through the Event Calendar on the Samco app. It shows record dates, ex-dates, offer windows, and payment dates for dividends, bonus issues, stock splits, rights issues, buybacks, and more. For voluntary actions like rights issues and buybacks, missing a deadline means […]
What Is the Difference Between Mandatory and Voluntary Corporate Actions?
Corporate actions fall into two categories based on whether you need to do anything as a shareholder. Mandatory Corporate Actions These are applied automatically to all eligible shareholders on the record date. You don’t need to apply, approve, or respond. The change simply reflects in your DEMAT account or bank […]
How Do Corporate Actions Impact the Stock Price?
Corporate actions don’t just affect your share count, most of them have a direct and predictable effect on the stock price as well. Bonus Issue The stock price drops proportionally on the ex-date. If a company announces a 1:1 bonus, the price adjusts to roughly half. Your total holding value […]
Are Corporate Actions Mandatory for Shareholders to Accept?
Not all corporate actions work the same way. Some are applied automatically to all eligible shareholders, while others require you to actively decide whether to participate. Mandatory – No action needed from your end These are applied automatically to all shareholders on record as of the record date. You don’t […]
How Do Corporate Actions Affect My Shareholding?
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 […]
Why Do Companies Announce Corporate Actions?
Companies don’t announce corporate actions arbitrarily. Each one serves a specific purpose rewarding shareholders, raising capital, improving stock liquidity, or restructuring the business. Reward shareholders – Dividends distribute surplus profits directly to you. A bonus issue does the same without paying out cash. Improve stock accessibility – When a share […]
What Are Corporate Actions?
A corporate action is any decision made by a company that brings a material change to its stock or affects its shareholders. When a company announces a bonus issue, pays a dividend, splits its stock, or goes through a merger, each of these is a corporate action. As a shareholder, […]
What Is a Periodic Call Auction and Why Are Some Stocks Traded in This Category?
Periodic call auction is a special trading mechanism where stocks trade in scheduled auction sessions instead of continuous trading throughout the day. SEBI introduced this to reduce volatility in illiquid stocks. Which stocks move to this category? Stocks that meet specific illiquidity criteria are moved to periodic call auction, including […]
What Is the Impact of Corporate Actions on F&O Contracts?
When a company announces a corporate action like a bonus issue, stock split, or dividend, it affects the share price. Since F&O contracts are based on the underlying stock price, these actions impact your open F&O positions too. How does it work? For corporate actions like stock splits, bonus issues, […]
Can I Use Pledged Shares as Margin for F&O Trading?
Yes. With Samco’s StockPlus , you can pledge your existing shares and mutual fund holdings to generate collateral margin and use it for F&O trading without needing any cash balance in your trading account. How does it work? You pledge your shares through Samco Star Back Office. Once pledged, a […]
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