A Follow-on Public Offer (FPO) is a type of public offer in which an existing company listed on the stock exchange issue new shares to the existing shareholders or to the new investors.

It is different from an IPO where the company issue its shares to its public for the first time to collect funds in order to grow their business.

The reason behind the company performing an FPO is to expand its equity base. The company uses FPO only after the company has started the process of an IPO to make their shares available to the public and to raise capital for their business.

The FPO can be raised for many reasons like, financial expansion, paying off debt, or funding acquisition.

There are two different types which a company can conduct Follow on Public Offer (FPO):

1) Dilutive FPO

2) Non-Dilutive FPO

Dilutive FPO

In dilutive FPO, the company issue additional number of shares but the price value of the company’s share does not change and remains the same. These overall decreases reduction in earnings per share as well as the share price.

Here, the company’s board releases new share offerings to the public. However, an FPO is used by a company only to reduce the debt or to raise additional capital of the company.

Non-Dilutive FPO

Non-Dilutive FPO means the shareholders of the company sell their private shares to the public. Here the money directly goes to the individual offering and not to the company.

Thus, the per-share earnings of the company does not get affected.

The share price issued in an FPO is lower than the prevailing market price. The primary motive behind issuing shares at a lower price is attracting and getting more subscribers to its issue.

However, lower demand of the share price instantly lowers the market price and levels it with the FPO issue price.

FPO is generally considered an advantage compared to IPOS because investors get an idea about the company's management, business practices, and potential growth.

The company listed on the stock exchange is not new, and investors will get the historical reference for its earnings report, the performance of the stock market, and much data to bank on.

FPO tend to have less risk than IPO because the price fixed for an IPO is lower than the market price to attract shareholders to invest more in FPO.

Several shareholders engage in the FPO to buy shares at a discounted market price and sell them in the market to gain a premium on their transaction.

A lot of research is required in FPO to know about the company and its past performance, but the degree of homework in FPO is a lot easier.

Hence it goes well for risky investors and gives them an opportunity to access shares of a company at a discounted price.

When a company declares a stock split, the number of shares of that company increases, but the market cap remains the same. Existing shares split, but the underlying value remains the same. As the number of shares increases, price per share goes down.

Stock split is done to infuse liquidity and to make shares affordable for various investors who could not buy the shares of that company before due to high prices.

Usually when the stock split is announced, the price of the stock increases. Investors might profit from this in an ideal world. But trading on knowledge of stock split before it is publicly disclosed is insider trading.

Prior to stock split record date, the stock generally rises due to increased demand, and following the ex-split date the price declines in accordance with the split ratio and may drop even further if many investors choose to book profit.

Share buyback or repurchase is the practice where companies decide to purchase their own share from their existing shareholders either through a tender offer or through an open market. In such a situation, the price of concerning shares is higher than the prevailing market price.

When companies decide to opt for the open market mechanism to repurchase shares, they can do so through the secondary market. On the other hand, those who choose the tender offer can avail the same by submitting or tendering a portion of their shares within a given period. Alternatively, it can be looked at as a means to reward existing shareholders other than offering timely dividends.

However, company owners may have several reasons for repurchasing their stocks. Individuals should make a point to find out the underlying causes to make the most of such decisions and also to benefit from them accordingly.

There may be several reasons why a company opts for a stock buyback. However, the list below highlights the most common reasons for the same.

When There Is Excess Cash but Not Enough Projects to Invest In

Companies issue shares to raise equity capital and expand their venture, but often such a practice does not prove to be of much use. Similarly, keeping excess money at the bank is more like a truncated cash flow offering liquidity over the ideal requirement. Hence, instead of piling on cash reserves, companies with robust financial standing tend to make the best possible use of the cash available through a stock buyback.

It is a Tax-effective Rewarding Option

When compared to dividends, share buybacks are more tax-effective for both companies and their shareholders. To elaborate, stock buybacks are subjected only to DDT, and the amount of money is deducted before distributing the earnings to the surrendering shareholders. On the other hand, dividends are taxed at 3 different levels.

To Consolidate Hold Over the Company

Often when the number of shareholders of a company exceeds the manageable limit, it becomes challenging for the entity to reach a decision unanimously. Additionally, it may result in a power struggle within the company and among the shareholders with voting rights. To avoid or aggravate such situations, company board members often resort to share buybacks and plan to consolidate their hold over the company by increasing their voting rights.

For instance, OYO Rooms’ attempt to repurchase shares worth $1.5 billion from Lightspeed and Sequoia Capital is one of the most recent examples of buyback of shares in 2020. The success of such a proposal would increase the company CEO’s current shareholding from a meager 10% to 30% and strengthen his hold over the company.

To Signal that the Stock Is Undervalued

When a company decides to buy back its shares, it may also indicate that the company considers its shares to be undervalued. Besides serving as a remedy for the situation, it also helps to project a positive picture of the company’s prospects and its current valuation.

Other than these, stock buybacks may be prompted to improve companies’ overall valuation or to reward their existing shareholders.

The following pointers highlight what are buybacks impacts that are faced by a company’s different financial aspects.

Effect on Earnings Per Share (EPS)

Repurchasing a company’s shares lays a direct impact on its EPS by increasing the ratio significantly. It mainly happens because the net income tends to remain the same, while the total number of outstanding shares reduces post repurchasing.

Effect on Financial Statement

The money spent to repurchase company stocks would be recorded in the business’s earnings report and can also be found in the statement of cash flow under the head ‘financial activities as well as the statement of retained earnings.

Besides influencing the income statement of a company, the impact of share buybacks can be noticed in other financial statements as well.

For instance, in the Balance Sheet, the record of a company’s cash holding would reduce and in turn, would lower its total assets. Simultaneously, the amount of shareholder’s equity would also undergo a reduction. Notably, such a reduction would help improve performance metrics like Return on Equity (ROE) and Return on Asset (ROA).

Effect on the Company’s Portfolio

Usually, companies who have faith in their prospects indulge in the practice of repurchasing their company shares. Such a display of confidence is received positively by potential investors and existing shareholders and helps earn their trust significantly. In turn, it helps the company to enhance its market reputation and facilitates an increase in its share value naturally. All of this directly helps improve the venture’s portfolio significantly.

Effect on Increasing Shareholder Value

Business owners who opt for share repurchase are more likely to enhance their EPS significantly, and that too much faster than operational improvements. Investors scouting for profitable investment options tend to acknowledge companies with steady EPS as a better income-generating avenue with enhanced growth potential.

Further, it is believed that companies who are capable enough to repurchase their shares from shareholders have a grand market presence and robust pricing power. Hence, the practice of share repurchase not only helps to project a positive image of the company in the market but also comes in handy for potential investors.

Investors often believe that the declaration of upcoming buyback of shares signifies that the company’s prospect is profitable. Further, it is believed to influence the overall stock price of the company. For instance, investors often believe that repurchasing shares from shareholders is a probable indication of the acquisition of big companies, the launch of new and improved product lines, etc., among others.

All in all, it can be said that share buyback signifies that the stock valuation of a company is going to increase shortly. Notably, hinting at such positive prospects further helps to draw the attention of investors who wish to make the most of such favourable circumstances.

Regardless, certain companies may resort to this practice when their stock valuation decreases. It is mainly done to prevent their capital from eroding further.

As a means to identify the actual motive behind the stock buyback, investors should factor in a few things like the current trends in stock prices and current earnings per share. Additionally, it will help them understand the implications of such a decision.

Yes, customers applying for Buyback through ICICIdirect will be charged cash brokerage as per their mapped brokerage plan. GST and other statutory charges will also be charged

You can check the upcoming Buybacks in the below mentioned link

https://www.icicidirect.com/ipo/buybacks

You can cancel your buyback application as long as the order is in ‘ordered’ status.

Steps to cancel your order:

1. Log in to ICICI Direct and navigate to the IPO module.
2. Go to the IPO Order Book and select your buyback order.
3. Click the ‘Cancel’ button to withdraw your application.

Please note: If the status of your order is ‘executed’, then it cannot be cancelled.

You can modify your buyback application as long as the it is in the ‘ordered’ status.

Steps to modify your order:

1. Log in to ICICI Direct and navigate to the IPO module.
2. Go to the IPO Order Book and select your buyback order.
3. Click the ‘Modify’ button to increase or decrease the quantity, then submit.

Please note:
If your order status is ‘executed’, you can place a fresh order for additional quantity—provided you have sufficient shares available. However, you cannot reduce the quantity once the order has been executed.

You have received less funds as TDS (i.e., income tax deducted at source) has been applied on the buyback proceeds. The tax is deducted upfront and the net amount is credited to your bank account.

Kindly refer to the email sent by the registrar to your registered email ID for the detailed breakup of deduction.

Right issues are an offer made by a company to its shareholder to purchase additional shares of their stocks by a certain date at a certain price. These are typically offered at prices that are lower than the price to pique interest

There are 4 ways to apply for Rights Issue:

1. Login to your ICICI Direct web account > Click on IPO section > Click on Rights Issue > Apply
2. Online through ASBA (Applications Supported by Blocked Amount) if your bank supports it just like you do for an IPO. Most large banks including Axis, HDFC, ICICI, SBI, Kotak support this method.
3. Online through the RTA (Registrar and Transfer Agent) website.
4. To apply offline:-
• Click on the link - https://www.bseindia.com/publicissue.html
• Download the application form
• Filled the form and submit it to a Self-Certified Syndicate Bank (SCSB) branch (WEB).

Advantages of right issue:

• The company’s reputation improves as it exhibits growth and demonstrated long term commitment to serve customers by introducing a right issue feature.
• Existing shareholders become major controllers
• Quickest method of raising money

The rights shares can be renounced by participating in the rights entitlement trading platform of the stock exchange known as an on-market renunciation or by way of off-market transfer known as off-market renunciation.

In the case of on-market renunciation, the settlement of rights entitlement happens similar to equity stock on T+2. The on-market renunciation can offer better pricing opportunities based on the demand and supply of the RE in the market.

In the case of off-market renunciation, the pricing will be decided mutually by both parties. The off-market renunciation can be done till the issue closure date, unlike on-market renunciation which closes 3-4 before the issue closure date

If a customer neither apply in rights issue nor renunciate his rights entitlement the same will get laps. This is a financial loss to the customer.

You can check the upcoming Rights Issue in the below mentioned link

https://www.icicidirect.com/ipo/rights

No, Customer with corporate account cannot apply in rights issue online.

Corporate account customer has to submit the duly filled Rights Issue form along with the following documents at the designated bank branches with demat desk : 

1. Power of Attorney
2. Memorandum of Association
3. Copy of Board Resolution
4. Company PAN
5. List of Authorized signatories

You can download the form from the below link

https://www.bseindia.com/publicissue.html

The renunciation of rights entitlements is the process of renouncing or transferring or selling the rights to other interested investors at a better price.

When a shareholder is not interested in the rights entitlements offer given by the company, he can choose to renounce his rights rather than let it lapse. The renunciation of rights entitlements can happen either by way of rights entitlement trading or off-market transfer.

There are two ways of renunciation:

1. On-Market Renunciation - This is the rights entitlements trading platform of the stock exchange wherein the rights can be renounced on the exchange floor at a better price. The on-market renunciation can happen only till the last date of the rights entitlement trading which is generally 3-4 working days before the issue closing date.
2. Off-market renunciation - In this case, the interested buyer and seller can mutually agree on the price and complete the renunciation off-market. The off-market renunciation can be done until the issue closure date however it should be done in such a way that the renounce has sufficient time to apply for the rights issue before the issue closure date.

Current shareholders have the chance to increase their ownership in a company at a discounted price through a right issue. By doing this, they increase their exposure to a company’s stock, which may or may not be advantageous depending on the profit or loss statement of the company.

Rights issue can lower a stock’s value and decrease trading volume, both of which have an impact on the share price. By adding more shares, stock prices become diluted and there may be a downward trend in share valuation.

Rights issue frequently result in increased interest in (and trading volume on) those shares, which frequently has a significant impact on trading activity on the day they are announced.

No, once placed, a rights issue order cannot be modified. You will need to cancel the existing order and place a fresh order with the desired quantity.

Adani Enterprises Ltd. has announced a Rights Issue aimed at strengthening its capital base and supporting future growth initiatives.

Key Details:

Rights Issue

• Issue Size: ₹24,930 Cr
• Issue Price: ₹1,800 per share
• Entitlement Ratio: 3:25
• For every 25 fully paid-up shares held on the record date, shareholders are entitled to apply for 3 rights shares
• Record Date: 17 November 2025
• Issue Opens: 25 November 2025
• Issue Closes: 10 December 2025
• Last Day of Market Renunciation: 5 December 2025

Payment Structure (3 Instalments):

The rights shares will be allotted as partly paid-up shares, with payments to be made in three stages:

1. During Application: ₹900 per share
• Window: 25 Nov – 10 Dec 2025
2. First Call: ₹450 per share
• Window: 12 Jan – 27 Jan 2026
3. Final Call: ₹450 per share
• Window: 2 Mar – 16 Mar 2026

Fully paid-up shares will be allotted only after all three payments are completed.

Your Options:

• Apply for the Rights Issue through the IPO section.
• Renounce your rights by selling RE shares from your demat holdings before the renunciation deadline.

How to Apply

Website

Login to icicidirect.com → IPO → Rights Issue

Mobile App

Login to ICICI Direct App → IPO → Select from ongoing offers

Please note: Rights Issue applications can only be made via the ASBA facility. If your trading account is linked to a bank other than ICICI Bank, you may apply through your bank's ASBA portal or offline.

Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are company's accumulated earnings which are not given out in the form of dividends, but are converted into free shares.

The basic principle behind bonus shares is that the total number of shares increases with a constant ratio of number of shares held to the number of shares outstanding. For instance, if Investor A holds 200 shares of a company and a company declares 4:1 bonus, that is for every one share, he gets 4 shares for free. That is total 800 shares for free and his total holding will increase to 1000 shares.

Companies issue bonus shares to encourage retail participation and increase their equity base. When price per share of a company is high, it becomes difficult for new investors to buy shares of that particular company. Increase in the number of shares reduces the price per share. But the overall capital remains the same even if bonus shares are declared.

According to bonus number of shares issued in the bonus share, the stock price gets adjusted. Consider a business where a business announced a 4:1 bonus issue. Share priced at Rs. 100/- each before bonuses. If there are 100 shares then:

(100 x 100) / 400 = 25for the stock price following the bonus issue.

The shares are credited in case of a bonus issue a few days (normally 15 days) after the ex-date. Thus the investor is unable to sell the share before it is credited to his demat account because doing so could result in an auction.

It is advantageous for the company’s long-term shareholders how wants to increase their investments. Because the company uses the cash for business growth, bonus shares increase the investors’ confidence in the company’s operations.

Tata Motors Demerger: What Investors Need to Know

Tata Motors has split its Commercial Vehicle business and Passenger Vehicle business (including Electric Vehicles and Jaguar Land Rover) into two distinct companies.

The Commercial Vehicle arm is now under TML Commercial Vehicles Limited (TMLCV) whereas the Passenger Vehicle arm remains under Tata Motors.

Key Date:

Record Date for Shareholders: 14th October, 2025

Impact on Shareholders:

1. Portfolio:

a. For every one share of Tata Motors held, shareholders will receive one share of TMLCV. No additional investment is required to receive these shares.

b. After the demerger, equity shareholders will hold shares in two companies – Tata Motors and TMLCV.

c. There will be a drop in the portfolio on record date.

2. MTF Positions:

a. Customers can continue to hold existing MTF Positions of Tata Motors during the demerger.

b. Margin requirement will increase to 60% effective 10th October, 2025 (Friday EOD).

c. Customers need to actively monitor the existing positions and maintain sufficient margin to avoid square off of existing positions.

d. A special price discovery session will be held on 14th October, 2025 (Tuesday), from 9:00 AM to 10:00 AM. Buying and Selling of Tata Motors stock through MTF will not be allowed during this session.

3. F&O Positions:

A. Expiry of Existing Contracts

a. All existing Tata Motors F&O contracts with expiry on 28th October, 2025, 25th November, 2025, and 30th December, 2025 will now expire on 13th October, 2025 (Monday).

b. These contracts will be physically settled if not squared off before market hours on October 13, 2025.

c. ICICI Direct system will attempt to close positions if not marked for delivery:

i. Long Options – by 12:00 PM

ii. Futures & Short Options – by 2:30 PM

B. Introduction of New Contracts

a. Fresh F&O contracts will be available from October 14, 2025.

b. Expiry dates for these contracts remain unchanged: 28th October, 25th November, and 30th December, 2025.

We refer to the scheme of arrangement between the ICICI Securities Limited (‘ICICI Securities’ or “the company”) and ICICI Bank Limited (‘ICICI Bank’) with respect to delisting of equity shares of the company and Notice^[1] sent to public shareholders of meeting held on 27 March 2024 wherein the tax implications were covered in detail.

As per the scheme of arrangement, the equity shares of ICICI Securities are delisted and cancelled from the BSE and the National Stock Exchange (NSE) on 24 March, 2025 (i.e. Record Date). Upon delisting, the public shareholders of ICICI Securities received 67 equity shares of ICICI Bank for every 100 equity shares of ICICI Securities in accordance with the swap ratio as defined in the scheme.

This transaction has tax implications for shareholders and we have explained these tax implications in the form of FAQs.

Please Note: The tax implications mentioned below are neither exhaustive nor comprehensive and is not intended to be a substitute for professional advice. For further professional guidance and tax liability computation, shareholders may seek help of their tax advisor.

What is the tax implication of conversion of ICICI Securities to ICICI Bank Shares?

The cancellation of equity shares of ICICI Securities shall be considered as a ‘transfer’ as per section 2(47) of the Income Tax Act and, therefore, taxable in the hands of the shareholders of ICICI Securities Ltd as on the record date i.e. 24 March, 2025.

The gain/loss arising on such transfer of shares will be liable for taxations under section 45 of the Income Tax Act as Capital Gain/loss. Capital gain should be computed as per the provisions of Section 48 of the Income Tax Act and the rate of income-tax would depend on the period of holding of the shares.

How will the gain on transfer/cancellation of equity shares of ICICI Securities be computed?

The difference between

(a) the fair market value of the shares of ICICI Bank as on the record date received as sale consideration for cancellation of shares of ICICI Securities and

(b) the cost of acquisition of shares of the ICICI Securities should be treated as gain arising to the shareholders.

The characterization of income from transfer of securities as a ‘business income’ or ‘capital gains’ should be examined on a case-by-case basis. Please consult your tax advisor for personalized guidance.

What is the Fair Market Value (FMV) of ICICI Bank shares for tax purposes?

The FMV is the average market price of ICICI Bank shares as on the Record Date on NSE, which is ₹1,358.95 per share (as on March 24, 2025). This value may be used to calculate the sale consideration for the purpose of capital gain computation. Please consult your tax advisor for personalized guidance.

What is the Cost of Acquisition of ICICI Securities shares for tax purposes?

Original cost of purchases of ICICI Securities shares shall be considered as cost of acquisition for tax purposes.

What is the nature of capital gain and what will be the applicable tax rates?

Depending on the period for which the shares are held, the gains would be taxable as ‘short term capital gain’ or ‘long-term capital gain’. For listed securities, if it is held for more than 12 months, the gain would be considered as ‘long term’ and if held for less than 12 months gain would be considered as ‘short term’.

Since Securities Transaction Tax (“STT”) is not payable on the transaction pursuant to the Scheme, the provisions of section 112A of the IT Act should not apply. The long-term capital gain will be taxed at the rate of 12.5% plus applicable surcharge and cess and short-term capital gain will be taxed as per the applicable slab rates plus surcharge and cess. Please consult your tax advisor for personalized guidance.

Illustration –

Mr. X had purchases 100 equity shares of ICICI Securities on 1 Dec, 2023 for price of Rs. 500 per equity share and Mr. Y had purchased 100 equity shares of ICICI Securities on 24 April 2024 for price of Rs. 600 per equity share. Upon cancellation and delisting of equity shares of ICICI Securities on 24 March 2025, Mr. X and Mr. Y each received 67 shares of ICICI Bank. The Fair Market Value of ICICI Bank shares on 24 March 2025 was Rs. ₹1,358.95 per equity share.

Computation of Capital Gain –

*Surcharge and Education cess is not considered in above computation of capital gain.

**For short term gain computation purpose, 30% tax rate is assumed.

^[1]https://www.icicisecurities.com/Upload/ArticleAttachments/Notice_of_the_meeting_of_the_Equity_Shareholders_to_be_held_on_27_March_2024.pdf

Disclaimer - The information provided above sets out the income-tax implications on cancellation of equity shares of the ICICI Securities Limited and issue of equity shares by the ICICI Bank Limited in a summary manner and is not a complete analysis or listing of all potential tax consequences under the income tax laws presently in force in India. The above overview is not exhaustive or comprehensive and is not intended to be a substitute for professional advice. The above information is provided is based our understanding of the Income Tax Law. The shareholders are requested to approach their tax advisors for personalized tax advice.

Corporate actions like bonus, split, merger and demerger do not change your overall investment value, but they do impact the number of shares held in your demat account and price per share of the security. To maintain accurate P&L and valuations, your portfolio may need to be updated.

How to Update Portfolio Entries

Your portfolio is auto-updated in the event of a stock split, bonus or merger. For certain corporate actions like a demerger or capital reduction, you’ll have to manually update your portfolio using either of the following methods:

Option 1: Through Advance Options

Path: Stocks → Portfolio → Advance Options → Add New Transaction Manual

Option 2: Through Transaction History

Path: Stocks → Portfolio → Click on 3 dots under ‘Actions’ for the stock → Transaction History → Add Transaction

Impact of Corporate Actions Explained

A. Bonus / Stock Split

Effect: The number of shares held in your demat account for the security increases, based on the bonus or split ratio and the price per share reduces proportionally.

Credit Timeline: The timeline for the bonus shares to be credited to Demat account may vary.

Impact: A temporary drop in P&L is likely till the extra shares are credited.

Action Required to Update portfolio:

No action is required at your end. Bonus and split entries are auto-updated in your portfolio.

B. Demerger

Effect: Shares of the newly formed company will be credited in your demat account. The quantity and price of the demerged company will change.

Credit Timeline:  Shares of the newly formed company will be credited to your demat account after all due approvals are received from the demerged company. There are no fixed timelines for the credit of shares.

Impact: The price and quantity of demerged company will change as per the ratio announced by the Company. The Price and quantity of the newly formed company will have to be updated by manually adding entries in your portfolio.

Example: A Ltd. demerges into A Ltd. and B Ltd.
• Transaction history of A Ltd. as on the record date is as shown in the table below:

• Demerger Ratio: 1:5 → You receive 500 shares of B Ltd.

• Cost Apportionment: 80% to A Ltd., 20% to B Ltd.

Action Required to Update portfolio:

Yes, entries have to be manually updated in Portfolio.

Steps:

1. Identify your holding in A Ltd. as on the record date.

2. Apply the cost apportionment % to split the total cost between A Ltd. and B Ltd. (Refer to the table below to understand how to calculate this)

3. Add a Buy transaction for B Ltd.:

• Quantity = A Ltd. shares × demerger ratio (e.g., 40 × 1/5 = 8)

• Price = (Total cost × 20%) ÷ Quantity

4. Adjust A Ltd.’s transactions by placing contra-sell entries of existing transactions and a buy entry to reflect the revised cost (80%).

• Price of Buy entry = [Total transaction price of A Ltd. (incl. all charges and brokerage) × 80%] ÷ 80 qty = (66050 × 80%) ÷ 80 = 660.5

• Quantity for the Buy entry will be calculated as per the ratio (i.e., 80% of the total quantity)

C. Merger

Effect:  Shares of the new company will be credited to your demat account as per the ratio that the company has announced.

Credit Timeline:  Shares will be credited after all due approvals are received. There are no fixed timelines for the credit of shares.

Impact: The quantity and price of the merged entity will change as per the ratio. The shares of the company which ceases to exist will be removed from your portfolio and the shares of the merged entity will be added to your portfolio.

Example: X Ltd. and Y Ltd. merge into Y Ltd., and X Ltd.  will no longer exist after the merger

• You hold: 100 shares of X Ltd. @ ₹500 = ₹50,000

• Merger Ratio: 5:2 → You receive 40 shares of Y Ltd.

➤ Action Required to Update portfolio:

No action required at your end.

D. Rights Issue

RE (Rights Entitlement) shares will be automatically updated with the transaction date based on the debit or credit of shares in your Demat account and the closing price recorded as the cost price.

However, the portfolio will have to be edited in two cases.

➤ Action Required to edit Portfolio:

a) When you have applied for the Rights Entitlement (RE) shares – The RE shares will be removed from your Demat and the original shares will be credited to your Demat. Portfolio will be updated with the sell entry for the RE shares with the Last Traded Price as the Transaction price.

b) When the Rights Entitlement (RE) that have been credited to your Demat have lapsed - The shares will be removed from your Demat and a sell entry will be updated in Portfolio for the lapsed shares. The transaction price for the sell entry will be the price as on the date of Lapse.

In both of the above scenarios, your capital gains statement will be impacted, unless your portfolio is edited.

To rectify your Capital Gains statement, you can edit or delete these entries by visiting: Website > Stocks > Portfolio > Holding Duration: Zero Holdings > Transaction History (for the specific stock

Summary: Action Required or Not

New process for Portfolio Update:

Additional Notes:

• When you receive shares via a bonus, split or demerger, the shares are automatically allocated to your Demat account. You do not have to allocate the shares at your end.

• When companies issue shares for corporate actions, there are actions at depository end for activation of new shares. Upon actual credit of new shares in demat account of clients, shares are automatically allocated in your demat account. Any delay in this process could result in a delay in the allocation of shares in your Demat account. In this case, you can Allocate the shares manually. This can be done by clicking on the ‘Allocate’ button on the Demat Holdings page.