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Corporate Actions The corporate actions may be broadly classified under stock benefits and cash benefits. The various stock benefits declared by the issuer of capital are: • Bonus • Rights • Merger / De-merger • Amalgamation • Splits • Consolidations • Hive-off • Warrants, and • Secured Premium Notes (SPNs) among others. The cash benefit declared by the issuer of capital is cash dividend Dividends Dividends which are below 5% of the market value of the underlying stock, would be deemed to be ordinary dividends and no adjustment in the Strike Price would be made for ordinary dividends. For extra-ordinary dividends greater than or equal to 5% of the market value of the underlying security or all cases of dividends , where the listed entity has sought exemption from the timeline prescribed under the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Strike Price would be adjusted. NISM Mock Tests - https://modelexam.in/nism-exams/nism-mock-test.html NISM Study Material - https://modelexam.in/nism-exams/nism-study-material.html NISM 7 SORM Exam Preparation - https://modelexam.in/nism-exams/nism-series-7-sorm.html NISM 15 Research Analyst Exam Preparation - https://modelexam.in/nism-exams/NISM_Research_Analyst.html NISM Equity Derivatives Exam Preparation - https://modelexam.in/nism-exams/nism-equity-derivatives.html #corporateaction #stockbenefits #cashbenefits #bonus #dividend #financemarket #capitalmarket #equity #equitymarket #equitymarkets #sharemarket #stockmarket #stockmarketforbeginners #stockmarketindia #securities #securitiesmarket #securitiesoperations #nism #sebi #financialeducation
