About Bonus share price change


#1

Suppose, i buy 100 shares of x which is going to give bonus 1:5.
its ex date is day 3, record date is day 4 and i buy share on day 2 and the stock is not delivered to my demat account since its T+3 days delivery.
On day 2, the share price was 500, after giving 5 shares for every one share as bonus its price become 100…
since shares was not delivered to me on record date, after day 4, my 100 shares will be same and price for those shares will be 100 ah, it means total worth of shares will become 50000 Rs to 10000 Rs, and i will have a huge loss in it ah,
kindly clarify my doubt.


#2

@VigeVet : (1)scheduled Delivery at nse/bse is T PLUS 2 and never t plus 3. (2) if you bought on day 2 (T day )which is a day before share went ex bonus you will get delivery on record date which is day 4 ( T plus 2 )as per your example.(3) IF NOT DELIVERED BY SELLING BROKER ,the share will go in auction on day 05 ( ex bonus day )and all 600 shares will be bought in auction and credited to your demat by same evening. (4) in rare case of being there is no seller in auction ,you will not get shares but cash credit on square off which can be as high as 20% higher than closing price minus some regulatory charges.(5) you said 5 share for every share bonus means 5 :1 not 1:5.
There is no auction system in T2T ,Z ,P group share but compulsorily squared off.


#3

thanks for ur kind reply @sabkaview
if i unknowingly bought a share which is giving bonus shares just a day before ex date and share is delivered to me and its on my demat account after record date, then i wont get bonus shares know and my shares price also will go down know


#4

to put it very simply : if you have bought a share cum bonus your broker is 100 % responsible to give you bonus ( in rare case if no delivery is coming in auction too ,cash compensation )irrespective of late delivery to your demat or no delivery from selling broker.


#5

thanks a lot @sabkaview
most of my doubts were cleared.


#6

@sabkaview
buying shares which are going to give bonus shares is good for us.