Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» EMER...?????
by ehele90 Today at 6:42 pm

» JKH will touch 175 very soon
by Bakka1988 Today at 3:24 pm

» CIND බලාගෙනයි
by Bakka1988 Today at 3:15 pm

» Positive News
by Promoney Today at 2:21 pm

» Why AAIC Should trade above RS.50/-
by nosf76677 Today at 2:01 pm

» Browns investments
by Winner123 Today at 11:33 am

» lOFC definitely will hit 6/-
by wealth123 Today at 10:49 am

» GLASS (piramal glass ceylon plc) from
by MarketWch Today at 10:20 am

» Capital trust recommended to buy AEL ..Target Price Rs.24.50
by wisdom79 Today at 9:27 am

» Elcection Commisioner( MACO)
by Capton KIng Cool Today at 8:59 am

» Presidential election will be held on 16 th of November to 7th of December
by rukshan1234 Yesterday at 11:30 pm

» Which Trading System Or Strategy Is The Most Profitable?
by Teller Yesterday at 8:13 pm

» NEST will touch Rs2000 soon
by Bakka1988 Yesterday at 5:41 pm

» Gotabaya Rajapaksha will named after 10th August. Aspi will move above 6500
by samaritan Yesterday at 11:59 am

» CFVF.N0000 - Target price Rs.60- Donnt sell
by Trader321 Yesterday at 10:06 am

» CFVF.N0000 - Really started Again ..........
by Trader321 Yesterday at 9:59 am

» LOLC Holding( LOLC N.0000)
by Capton KIng Cool Yesterday at 8:45 am

» LOLC Holding( LOLC N.0000) MICRO FINACE In Cambodia
by Capton KIng Cool Yesterday at 8:43 am

» PAN ASIA BANK
by samaritan Yesterday at 8:17 am

» ASHO will hit moon. Deal with SLTB
by Bakka1988 Sun Aug 18, 2019 9:41 pm

» CFVF.N0000 - Deal at What price?
by Winner123 Fri Aug 16, 2019 8:35 pm

» Profitability of all the banks slides down on bigger margins
by hammurabi Fri Aug 16, 2019 8:25 pm

» කව්ද පකීර් ?(who is the Veteran)
by reyaz Fri Aug 16, 2019 7:32 pm

» News AEL super report in this quarter Don't sell ..
by sheildskye Fri Aug 16, 2019 6:59 pm

» HEXP : GOOD TO COLLECT BELOW RS.85
by Trader321 Fri Aug 16, 2019 10:20 am

» CFVF.N0000 :Amazing Result- Quarter Profit more than Half Billion
by Winner123 Thu Aug 15, 2019 12:43 pm

» Kzoo vs onal
by wisdom79 Wed Aug 14, 2019 9:45 pm

» GREG is back
by wisdom79 Wed Aug 14, 2019 9:42 pm

» AAIC - Profit over one billion!!!!!
by wisdom79 Wed Aug 14, 2019 9:39 pm

» Sri Lankan Billionaire Dhammika Perera may Spend Rs. 10 Billion for a Presidential Campaign without any Risk! His Daily Casino Profits said to be over Rs. 50 Million
by Teller Wed Aug 14, 2019 8:40 am

» CFVF : Another dividend ?
by Promoney Tue Aug 13, 2019 7:28 pm

» CFVF.N0000 & PARQ.N0000 - These two counters Must be in your Portfolios
by Trader321 Tue Aug 13, 2019 6:39 pm

» PARQ.N0000 : Target Price Rs. 50 /=
by Hewagak Tue Aug 13, 2019 5:01 pm

» TAP Less than 1% Shares in the Market
by sanjulanka Tue Aug 13, 2019 12:10 pm

» AEL PRICE TUESDAY
by Winner123 Tue Aug 13, 2019 12:09 pm

» what is the future of KHL (JOHN KEELES HOTELS)
by bhanu Mon Aug 12, 2019 9:03 pm

» TKYO.X0000 will it move furthur?
by bhanu Mon Aug 12, 2019 5:00 pm

» stock market investors and cheated those who approached them.
by Asoka Samarakone Mon Aug 12, 2019 10:14 am

» LLMP can run in present market
by wealth123 Mon Aug 12, 2019 10:03 am

» Where Is Equity Champ
by Teller Mon Aug 12, 2019 8:52 am

» Pending AEL crossing @ Rs.20 deal near soon..
by EPS Sun Aug 11, 2019 8:26 pm

» HI EVERY ONE I'M NEW TO THE MARKET PLEASE HELP ME IS IT GOOD TIME TO ENTER THE MARKET AND WHAT IS GOOD TO BUy?
by King of vice Sun Aug 11, 2019 7:38 am

» Let's Pump And Dump BUT...
by King of vice Sun Aug 11, 2019 7:26 am


You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market & Forum Help » Stock Trading - Corporate Actions

Stock Trading - Corporate Actions

Go down  Message [Page 1 of 1]

1Stock Trading - Corporate Actions Empty Stock Trading - Corporate Actions on Sat Apr 23, 2011 6:50 pm

Quibit

Quibit
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
What is a 'rights issue'?

A company issuing shares in a specific proportion to the existing shareholders of the Company. If you hold shares on the date of the EGM you will be entitled to buy shares at a lower price than the prevailing market price of the company's share. But if you don't want to exercise your rights you can also trade your rights in the market as it goes as a seperate security (denoted by the letter 'R'). All the information regarding the issue will be given out to shareholders by way of a Circular.

I don't have money to exercise my rights. What are my options?

If you don't want to buy shares for the rights you are given you can sell the rights in the market. To do this you have to renounce your rights in favor of the CDS. You will get a form called the 'Form of renunciation to CDS'. Fill this form and hand it over to the CDS. After that you can trade the rights security from the day it starts trading like a normal share (but for a shorter period).

You can also ignore the rights issue which is not recommended because your shareholding in the company will be diluted if you don't subscribe for the rights.

The important dates pertaining to the rights issue will most likely be given in the Circular which will be sent to you if you are entitled for the rights issue. Further, the CSE will also announce the dates in the ATS and also on the website. It always pays to check the announcements regularly!

What are the important dates for a rights issue?

- EGM date
The date on which the shareholders pass the requisite resolutions for the rights issue.
- XR date
The immediate market day following the date of the EGM.
- Date of dispatch of provisional letter of allotment
If you hold shares as at end of trading on the EGM date you will get a provisional letter of allotment giving out your entitlement for the rights. Once you get this letter you can decide either to exercise your rights or to trade your rights.
- Last date of acceptance and payment
The date by when you should complete payment for the rights you are going to exercise.
Period of renunciation

From the date the rights start trading up to the renunciation date you can trade on your rights.

What will happen on the XR date?

XR date is linked to a rights issue. XR date will be the immediate market day following the day on which the shareholders approve the resolution for the rights issue. To be entitled for the rights issue you have to hold shares on the EGM date. If you buy the particular share on the XR date you will not be entitled for the rights issue.

Can I buy additional shares over and above the number of rights allotted to me?
Yes, this would be possible due to some shareholders not exercising their rights. You can fill in the form 'Application for additional shares' and submit it along with the required remittance. But the number of additional shares allotted to you will depend on a scheme proposed by the Directors and approved by the shareholders.

When will I get the shares allotted for my rights?

You have to fill in the required forms and submit it along with the required remittance as explained in the circular. The Company is required to complete the CDS uploads within 12 market days of the last date of acceptance and submit a Declaration to the CSE on the immediately following market day as per CSE Rules. The shares will come in to your account on the following day. So ideally the shares should come in to your account within 14 market days from the 'last date of acceptance and payment'. But this could change because some companies do finish the uploads before 12 market days. So the latest day for the shares to come in to your account would be the 14th market day from the last date of acceptance and payment.

What is a Warrant? Why does it exist?

A warrant is a security which gives the holder the right to buy the shares of a particular company at a pre determined price on a pre determined date. Warrants could be issued by a company as a separate issue or it could be coupled with a rights issue. This security denoted by the letter 'W' could also be traded on the stock exchange. The companies issue warrants to enable them to raise funds in a future date and in the Sri Lankan context mostly as a sweetener for rights issues.

If I hold Warrants in a particular company, what should I do?

You can deposit your warrants in your CDS account and you can trade the warrants up to the date of expiry which would be given in the circular sent to you. If you have warrants as at the expiry date you can excercise these warrants during the exercise period. That is, you can convert the warrants to ordinary shares of the company by paying a sum equal to the exercise value (exercise price into the number of warrants to be exercised) to the registrar to the issue.

What is a Capitalization of reserves?

This is more commonly known as a bonus issue. This is a situation in which you are given shares free of charge in a specific proportion to their current holding. The required funds are taken from the reserves of the Company.

What should I do to get shares in a capitalization of reserves?

If you are a shareholder entitled for the capitalization of reserves you will get a circular setting out all the details. If the company's Articles of Association require shareholder approval to be obtained for the capitalization, the company will hold an Extraordinary General Meeting to obtain same (Remember, to be entitled for the capitalization you should hold shares of that particular company as at end of trading on the EGM date).

If the shareholders approve the particular resolutions, the company is required to complete the direct uploads within 5 market days from and excluding the date of the EGM and submit a Declaration to the CSE on the immediately following market day as per CSE Rules. The shares will be available in your account on the following market day.

What is a share split/sub-division? Is it true that the price goes down immediately after the sub-division?

Share sub-division is when one share of a company is divided in to a higher number in a particular ratio (i.e. 1 share sub-divided into 2 or 1 share sub-divided into 4, etc.). This is done with the purpose of increasing the liquidity and tradability of a share, when the share price of a company is very high. The price of one share after the sub-division will definitely go down but the total value of your shares will remain same because you have more number of shares. Share consolidation is the opposite of this.

What does XC date mean?

XC stands for ex-capitalization. Similar to a rights issue, in the case of a capitalization you should hold shares prior to the XC date (as at end of trading on the EGM date) to be entitled for the capitalization. Buying shares on or after the XC date will not entitle you for the capitalization.

Copyright: Sri Lanka Equity Analytics
www.srilankaequity.com

2Stock Trading - Corporate Actions Empty Re: Stock Trading - Corporate Actions on Fri Dec 30, 2011 10:31 pm

Kumar

Kumar
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Very informatique. Thanks a lot.

3Stock Trading - Corporate Actions Empty Re: Stock Trading - Corporate Actions on Fri Dec 30, 2011 10:47 pm

bakapandithaya

bakapandithaya
Vice President - Equity Analytics
Vice President - Equity Analytics
Thnkx for sharing

4Stock Trading - Corporate Actions Empty Re: Stock Trading - Corporate Actions on Sat Apr 07, 2012 12:33 pm

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics
Good to know.
Good work.

5Stock Trading - Corporate Actions Empty Re: Stock Trading - Corporate Actions on Wed Oct 01, 2014 4:35 pm

nalban


Manager - Equity Analytics
Manager - Equity Analytics
Thanks I have gained a lot of knowledge as a new comer by reading these.

6Stock Trading - Corporate Actions Empty Re: Stock Trading - Corporate Actions on Wed Oct 01, 2014 7:37 pm

fff4sl

fff4sl
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Helpful *****

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum