Q1: What happens to my stock cost when there’s a bonus, split, merger, or demerger?

When a company announces a corporate action like a bonus issue, stock split, merger, or demerger, it affects the number of shares you hold or their cost. These changes are made automatically in your portfolio based on your holding as of the record date. The total value of your investment remains the same, but the cost per share changes according to the action.

Example (Bonus Issue):
You own 100 shares of XYZ Ltd. at ₹200 each → ₹20,000 total investment.
Company announces a 1:1 bonus → You receive 100 extra shares free.
New holding: 200 shares, new cost per share = ₹100 (₹20,000 ÷ 200 shares).

Q2: When will bonus, split, merger, or demerger reflect in my portfolio?

The cost price of your shares is adjusted on the record date itself, based on the adjustment ratio provided by the company. This ensures your portfolio shows the correct cost and quantity after the corporate action takes place.

Example (Stock Split):
You hold 50 shares of ABC Ltd. at ₹1,000 each.
Company announces a 2-for-1 split → Each share splits into two.
You now hold 100 shares, and the new cost per share becomes ₹500.

Q3: What about the new shares from a bonus or split?

Although the cost price is updated on the record date, the actual bonus or split shares may take a few days (usually 5–7 business days) to reflect in your demat account. This delay is normal and depends on the company’s processing timeline.

Example (Bonus):
You hold 200 shares of DEF Ltd.
The company announces a 3:2 bonus (you get 3 shares for every 2 held).
You receive 300 bonus shares, making your new total 500 shares.
These new shares may reflect in your demat within a week, but the cost adjustment is done immediately on the record date.

Q4: Will my P&L report change?

Yes. After any corporate action, your Profit & Loss report is updated to reflect the new cost and quantity. This ensures that any realized or unrealized gains/losses are calculated accurately based on your revised holdings.

Example (Demerger):
You invested ₹50,000 in GHI Ltd.
Company announces a demerger → ₹30,000 of value remains in GHI Ltd., ₹20,000 is moved to the new company.
Your P&L will now show performance separately for both stocks.

Q5: Do I need to do anything?

No manual action is required from your side. The broker handles all updates automatically. However, if you see incorrect holdings or cost prices, raise a support ticket for help.

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