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What is Bonus Issue?

The bonus issue is a corporate action under which the existing shareholders get additional shares from the company.

Who is eligible for bonus shares?

Shareholders holding the shares in their demat accounts on the record date are eligible for corporate actions such as entitlement of rights shares, bonus shares, stock splits, dividends, etc.

When will the Bonus shares be credited in my demat account?

It typically takes around 15 days from the record date for bonus shares to get credited to the shareholder's demat account. However, this can vary depending on the Registrar and Share Transfer Agents (RTAs). Shareholders receive a notification from NSDL/CDSL when the bonus shares are credited to their demat account. The bonus shares are first credited under a temporary ISIN and are not immediately admitted to trading. It usually takes around 3-4 days for the shares to move from the temporary ISIN to the permanent ISIN after receiving approval for trading. The bonus shares will only appear after they are approved for trading.

Where can you check Bonus shares?

It typically takes around 15 days from the record date for bonus shares to be credited to the shareholder's demat account, but this can vary depending on the Registrar and Share Transfer Agents (RTA). Shareholders receive a notification from NSDL/CDSL when the bonus shares are credited to their demat account. The bonus shares are first credited under a temporary ISIN and are not immediately admitted to trading. It usually takes around 3-4days for the shares to move from the temporary ISIN to the permanent ISIN after receiving approval for trading. The bonus shares will only appear on after being approved for trading.

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What is Buyback?

Buyback or share repurchase is a corporate action in which a company buys back its shares from the shareholders. Generally, companies “buyback” shares at a price higher than the current market price. There are two types of buyback: tender offer and open market offer. Companies can choose either of these methods to buy back shares from their shareholders.

How can I apply for buyback of shares?

The POA / DDPI enabled customers can apply for buyback of shares as below: -

  1. Client can give their consent by accepting via a link being sent to client’s registered number and email id.
  2. The shares must be on free status. 
  3. Demat / Trading account status must be Active.

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What is Dividend?

Dividends are a portion of the profits or reserves paid by the company to its shareholders. A shareholder must hold the stocks in their demat account before the ex-date/ record date to be eligible for receiving dividend payout.

I have not received Dividend for the shares that I am holding in my demat account. What should I do?

The Registrar and Transfer Agents (RTA) appointed by companies are responsible for processing dividend payments. RBL does not receive any details about the dividend being credited to the shareholders. Shareholders who are eligible for the dividends but have not received them can contact the RTA. The details of the RTA of a company can be found on the website of NSE and BSE.

When and where will the dividend amount be credited?

In order to qualify for dividends, shareholders must hold the stock in their demat account on the ex-date/ record date of the dividend issue. The stock purchase should be made at least one day before the ex-date/ record date to ensure delivery of the stocks into the demat account by the record date.

How do I get dividends from my mutual fund investments?

Dividends are a portion of the profits or reserves paid by the company to its shareholders. A shareholder must hold the stocks in their demat before the ex-date/record date to be eligible for a dividend.

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How can I check my Mutual Funds portfolio?

You can check your Mutual Funds portfolio under the Mutual Fund tab on the platform. – Dashboard.

How to check capital gains applicability on the current holdings?

Capital Gains (Long Team/ Short Term/ Speculative) can be checked as mentioned below:

Dynami:

1. Log in to your account.
2. Go to Hamburger Menu.
3. Select Reports, followed by Back Office Reports.
4. Now click on Profit and Loss Report  to check applicable capital gains.

Leap:

1. Log in to your account.
2. Go to Portfolio and select Equity.
3. Now click on Booked P&L and Download to check the applicable capital gains.

Portal:

1. Log in to your account.
2. Go to My Account and select Back Office Reports.
3. Now click on Profit and Loss Statement.

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What is a Rights Issue?

A rights issue is a type of corporate action that enables company's current shareholders to purchase extra shares in proportion to their existing holdings, generally at a reduced price. Eligible shareholders will receive right entitlements (REs) in their demat accounts, which can be used to apply for the rights issue or trade on the market. However, if the REs are neither sold nor utilized for the rights issue, they will eventually expire and become worthless.

How can I apply for Rights Issue?

The RTA will put up the exact link on their website once the issue is live. The same goes for the banks which will support the issue. Alternatively, to apply for a rights issue, shareholders can use the Applications Supported by Blocked Amount (ASBA) process if their bank supports it.

What is a Right Entitlement?

Rights Entitlements (REs) are temporary demat securities that represent the shareholder’s eligibility to apply for the rights issue. Rights entitlements are offered to shareholders as a ratio to the number of securities held on the record date.

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What is a stock split?

A stock split is a corporate action where a company increases the number of shares by reducing the face value of the stock. Companies generally split shares to increase liquidity since the price of the stock reduces after the split. A split increases the number of shares by decreasing the face value, but the total value of the investment remains the same. The split shares will be credited in 2 days.

What is stock consolidation?

Consolidation of shares is a corporate action where a company reduces the number of outstanding shares by combining the shares and increasing the face value. Consolidation of shares is also known as reverse stock split. The company notifies the shareholders through email before the stock consolidation.

When will the impact of Stock Split be visible in my Portfolio?

The split shares will be credited in 2 days.

Why my average price has Increased/ decreased due to stock split?

A stock split is a corporate action where a company increases the number of shares by reducing the face value of the stock. Companies generally split shares to increase liquidity since the price of the stock reduces after the split. A split increases the number of shares by decreasing the face value, but the total value of the investment remains the same.

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