QWhat is the difference
between ‘Block deal’ and ‘Bulk deal’?
A
Block deal is a trade,
with a minimum quantity of 5,00,000 shares or minimum value of Rs. 5 crores,
executed through a single transaction, on the special “Block Deal window”.
Bulk deal is a trade, where total quantity bought or sold is more than 0.5% of the number of equity shares of the company.
The orders in a block deal are not shown to the people who trade from normal trade window. Bulk orders, on the other hand, are visible to everyone.
Source: sptulsian.com
Bulk deal is a trade, where total quantity bought or sold is more than 0.5% of the number of equity shares of the company.
The orders in a block deal are not shown to the people who trade from normal trade window. Bulk orders, on the other hand, are visible to everyone.
Source: sptulsian.com
QWhat is the pay-in day
and pay- out day?
A
Pay in day is the day
when the brokers shall make payment or delivery of securities to the exchange.
Pay out day is the day when the exchange makes payment or delivery of securities
to the broker. Settlement cycle is on T+2 rolling settlement basis w.e.f. April
01, 2003. The exchanges have to ensure that the pay out of funds and securities
to the clients is done by the broker within 24 hours of the payout. The
Exchanges will have to issue press release immediately after pay out.
QHow is the Retail
Investor defined as?
A
‘Retail individual
investor’ means an investor who applies or bids for securities of or for a
value of not more than Rs.2,00,000.
QWhat is Record Date?
A
Date set by a company on
which the investor must own shares, to be eligible for dividend, share split,
bonus, rights issue or other capital gains as declared / announced by the
company. It is the date established by the company for determining the
shareholders who are entitled to receive dividend, bonus or rights shares of
the company.
In this case, it is also important to know what an ex-date is. Ex-date is the date on which the seller, and not the buyer, of a stock will be entitled to a recently announced dividend, bonus or other corporate action. The ex-date is usually a business day prior to the record date, since T+2 trading cycle is followed for clearing and settlement of trades in India.
Example:
If record date for dividend is set by a company as 4th March, then those investors, whose names appear on the shareholder list of 4th March, as received by the company form the depository will be entitled to the dividend. Doing a back-calculation, for an investors name to feature in the 4th March shareholder list, he should be holding the shares two days prior to that date i.e. on 2nd March (due to T+2 cycle). Thus, those shareholders holding shares at end of day 2nd March, will be entitled to the dividend. The ex-date, in this case, will be 3rd March, a date on which the buyer will not be entitled to the dividend declared.
Source: sptulsian.com
In this case, it is also important to know what an ex-date is. Ex-date is the date on which the seller, and not the buyer, of a stock will be entitled to a recently announced dividend, bonus or other corporate action. The ex-date is usually a business day prior to the record date, since T+2 trading cycle is followed for clearing and settlement of trades in India.
Example:
If record date for dividend is set by a company as 4th March, then those investors, whose names appear on the shareholder list of 4th March, as received by the company form the depository will be entitled to the dividend. Doing a back-calculation, for an investors name to feature in the 4th March shareholder list, he should be holding the shares two days prior to that date i.e. on 2nd March (due to T+2 cycle). Thus, those shareholders holding shares at end of day 2nd March, will be entitled to the dividend. The ex-date, in this case, will be 3rd March, a date on which the buyer will not be entitled to the dividend declared.
Source: sptulsian.com
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