exclhyd said:
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Hi Pankaj..Unable to understand! In the first sentence u are talking about selling of shares and says that such sold shares will be on central clearing. Which means that the change of name is not effected in Records Of the company and hence the seller would get Bonus. IS THAT NOT RIGHT???
In effect The seller remains in the comoany's record ON RECORD DATE.
Then how can the bUYER get Bonus shares as stated by you in second para as quoted above??
Please consider it as positive discussion to clear the air!!
Hi exclhyd
When shares are in demat form companies obtain details of shareholders from dp or nsdl/shcil as on the record date. In respect of shares in central clearing details are given by them after ascertaining the beneficiary details. When shares are blocked for transaction details are sent only after final status is confirmed which may take a week or so.
When shares are in physical form once sale is confirmed and you receive in physical for you have to send it to the concerned company for effecting record change.
This was a major reason that share market was not very popular with investors.
Now NSE came up with online ordermatching and compulsory demat trading this has become popular and retail investors are also flocking to the market. It involves much less hassle then say opening FD with PSU bank.
BSE adopted online trading at a later date. The difference in volume of trading will tell the remaining stroy.
With SEBI stipulation of 25 % public holding market will be more vibrant and more retail participation will be there provided no exemption is given to this simple rule(Already some are exempted). With broadbasing and economy growth clubbed with demat trading and effective investor grievance redressal machinary(Much to be done) uptrend will be for a long time to be seen. notwithstanding 1500 point corrections here and there(% wise each time it will be less).
These are my views and you need not agree with it.
Pankaj