Yes. If you don’t want to subscribe to a rights issue, you have the option to renounce your entitlement either fully or partially in favour of someone else. Renouncing means transferring your rights entitlement to another person. That person can then apply for the shares in your place at the […]
How Do I Know If I Am Eligible to Apply for Rights Shares?
Eligibility is determined by the record date set by the company the same way it works for dividends and bonus issues. If you hold shares in your DEMAT account as of the record date, you are eligible to apply for rights shares in proportion to your holding on that date. […]
What Is a Rights Issue?
A rights issue is when a company offers its existing shareholders the option to buy additional shares at a price lower than the current market price. It is one of the ways a company raises fresh capital from its existing investor base — without going to outside investors first. The […]
How Do I Know If My Holdings Are Adjusted Correctly After a Split?
The adjustment happens automatically on the ex-date, you don’t need to do anything. But it’s worth knowing what to check to confirm everything has reflected correctly. What to look for After the ex-date, log in to your Samco account and check: Share count — Should have increased (split) or decreased […]
Why Do Companies Split or Consolidate Their Shares?
Both actions serve a specific purpose and they’re not cosmetic changes. The reason behind each is quite different. Why companies split When a stock price rises significantly over time, it can become too expensive for smaller investors to buy even a single share. A split brings the price down to […]
What Is a Reverse Stock Split (Consolidation)?
A reverse stock split is the opposite of a stock split. Instead of dividing shares, the company merges multiple shares into one increasing the face value and reducing the share count proportionally. The total value of your holding remains the same. How it works In a 1:2 reverse split, every […]
What Is a Stock Split?
A stock split is when a company reduces the face value of its shares, which increases the number of shares in circulation proportionally. The total value of your holding doesn’t change, only the face value, share count, and market price adjust. A split is expressed as a ratio. In a […]
What Happens If I Buy Shares Just Before or After the Record Date?
The record date determines your eligibility for a corporate action and the timing of your purchase relative to it matters. If you buy before the ex-date — Your purchase settles in time for you to be on the shareholder register by the record date. You are eligible for the bonus, […]
Are There Any Taxes on Bonus Shares?
Bonus shares are not taxed when they are credited to your account. Since you’re not paying anything to receive them, there is no income tax at the time of allotment. However, taxes apply when you sell them. How capital gains tax works on bonus shares The cost of acquisition for […]
Do Bonus Shares Affect the Stock Price?
Yes, and the adjustment is automatic. When bonus shares are issued, the stock price drops proportionally on the ex-bonus date to account for the increased number of shares in circulation. If a stock is trading at ₹500 and the company announces a 1:1 bonus, the price adjusts to approximately ₹250 […]
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