Corporate Actions and Updates

Stock Split

• What is it? Increases the number of shares while reducing the face value per share. It does not change the company’s overall market capitalization.
• Purpose: Makes shares more affordable for investors.
  

Consolidation of Shares (Reverse Split)

• What is it? Reduces the number of shares while increasing the face value per share.
• Purpose: Typically done to increase the stock price and reduce volatility.
  

Buyback of Shares

• What is it? When a company buys back its own shares, reducing the total number of outstanding shares.
• Purpose: Enhances shareholder value by increasing earnings per share.
  

How to Apply:

• POA Clients: Email Firstock support to process the application.
• Non-POA Clients: Use CDSL EASIEST to transfer shares to the RTA. The amount is credited to your registered bank account.
  

Dividends

• What is it? A portion of company profits distributed to shareholders, typically in cash or stock.
  
• Issues:
  • Not Received? Check if your bank details are updated with your depository.
    
  • Less Than Expected? Tax (TDS) may have been deducted. PAN updates are crucial.
    

Bonus Issue

• What is it? Free additional shares issued to existing shareholders based on their holdings.
  
• Delay in Credit: Bonus shares are credited within 15 working days post-record date.
  

Rights Issue

• What is it? Allows existing shareholders to buy additional shares at a discount.
  
• How to Apply:
  • Through ASBA via bank
  • Or RTA portal, based on issue instructions
    
• Right Entitlements (REs): Temporary tradable securities representing your right to buy shares.
  
• If Not Applied: REs lapse after the application period, and the opportunity is lost.
  

FAQs