corporate-actions-indialisted

# Corporate Actions (India) Getting a corporate action wrong silently corrupts every downstream number — returns, CAGR, valuation multiples, backtests. This skill is the adjustment maths and the decision rules. ## Date vocabulary | Term | Meaning | |---|---| | **Board approval date** | Announced under LODR Reg 30; not yet certain | | **Shareholder approval** | Postal ballot / AGM / EGM, where required | | **Record date** | The date on which the register is frozen. You must be a shareholder *as at* this date | | **Ex-date** | The first day the stock trades without the entitlement. Under the current T+1 settlement cycle in India, **the ex-date is the same day as the record date** | | **Payment / credit date** | When cash or shares actually arrive | **T+1 matters:** to be eligible, you must buy on or before the day *preceding* the ex-date. Anyone still using the old T+2 rule of thumb will be one day wrong. ## Bonus issue A capitalisation of reserves. No cash changes hands, no economic value is created. ``` Bonus ratio a:b → for every b shares held, a new shares received New share count = old × (a + b) / b Adjustment factor = b / (a + b) Adjusted historical price = price × b / (a + b) ``` Example, 1:1 bonus: share count doubles, every historical price is halved, EPS halves, market cap unchanged. - Cost of acquisition of bonus shares is **nil**; the holding period runs from the date of allotment of the bonus shares, not the original shares. This matters for LTCG/STCG cl