What should be trick for entitled bonus/dividend.

#1
Hi,
My name is Balajee. I am new for share market.
Please give me a clear view regarding below Examples:-

Ex1:
Date 07/09/09 : TV 18 announced a bonus right issue.
Date 08/09/09 : After announcement I bought share. I bought 50 share of TV18
Ex-Date : 18/09/09
Record Date : 22/09/09

AM I ELIGIBLE FOR BONUS OF RIGHT ISSUE

In simple word,
I am trading in NSE.
I dont want to hold share of XYZ company. Just want to buy share of XYZ as latest as for entitled bonus/dividend and sell it as soon as possible after entitled bonus/dividend.
What should be trick ?
Please give me an example.
Thanks in advance.
 

rvm123

Active Member
#2
s u r eligible for it. those who are shareholders as on 17.9.09 (i.e. 1 day before the ex-bonus date) will be eligible for the same
 

Capricorn

Well-Known Member
#3
Hi,


I dont want to hold share of XYZ company. Just want to buy share of XYZ as latest as for entitled bonus/dividend and sell it as soon as possible after entitled bonus/dividend.
What should be trick ?
Please give me an example.
Thanks in advance.
You got to be holding the share on the record date. Check the record date of the company and buy it a day before . You will fet the dividend/bonus.:)
 

AW10

Well-Known Member
#4
Your purchase date of Txn may not entitle you for bonus. For this the stock has to be in your demat account before record date. This ensures that stocks are in your name well in time of the cut-off for corporate action.

I would give 1 or 2 day of margin for this to accomadate for trading settlment process.

Happy Trading
 
#5
Thanks!
Still I am little bit confused but it seems all of u have sound information.

Let me clear more ,
Supose, ex-date is 18/09/09. I bought on 17/09/09 according to T+2 rule, I will be owner on 19/09/09 then how can I entitled for bonus/dividend.

As I think , If I sold on 17/09/09 then I will be entitled for bonus/dividend according to T+2 rule.


Please help me.
 

rvm123

Active Member
#6
date of delivery of the scrip is not the criteria
date of transaction is only the criteria for bonus, etc
if the transaction is ex-bonus, then u r not eligible for bonus. this has to be confirmed with the exchange
 

nareshch

Active Member
#7
Thanks!
Still I am little bit confused but it seems all of u have sound information.

Let me clear more ,
Supose, ex-date is 18/09/09. I bought on 17/09/09 according to T+2 rule, I will be owner on 19/09/09 then how can I entitled for bonus/dividend.

As I think , If I sold on 17/09/09 then I will be entitled for bonus/dividend according to T+2 rule.


Please help me.
You will get Bonus/dividend when you buy on 17th also as the scrip is trading incl Bonus/dividend . On18th , the price will be adjusted for bonus/dividend and hence no bonus/divided will be paid to the buyers on 18th .

But Buying just for the sake of Bonus /Dividend doesnt help small investors as on ex-date the bonus/dividend will be discounted from the stock price .

Naresh
 

nareshch

Active Member
#8
Hi,
My name is Balajee. I am new for share market.
Please give me a clear view regarding below Examples:-

Ex1:
Date 07/09/09 : TV 18 announced a bonus right issue.
Date 08/09/09 : After announcement I bought share. I bought 50 share of TV18
Ex-Date : 18/09/09
Record Date : 22/09/09

AM I ELIGIBLE FOR BONUS OF RIGHT ISSUE

In simple word,
I am trading in NSE.
I dont want to hold share of XYZ company. Just want to buy share of XYZ as latest as for entitled bonus/dividend and sell it as soon as possible after entitled bonus/dividend.
What should be trick ?
Please give me an example.
Thanks in advance.
If the shares you bought are in your Demat ( Not in brokers pool account) , then you are eligible. But now a days brokers are sending information to clients if they have right to participate in these issues. So you might be getting the information from your broker.

This rights issue ,ass of i know , will allow you to buy 25 shares @ Rs79 ( 1 share for every 2 shares held by you ) .

This is not exactly a BONUS issue. Its a rights issue where you have right to buy some shares at cheaper price . When these shares hit the market , market price of TV18 will be adjusted lower . Check with your financial advisor if its better to opt for this rights issue or not


Naresh
 
Last edited:

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