Dear all,
I have a incident to share about the Ex-Date/ Record and basis that, I am seeking guidance from the group members on how to handle the situation.
I have been holding Birlasoft shares for some time in different accounts. The company had declared Buyback at 500/sh and Dividend of Rs 3/Sh some time back. The Record date was 15th July and Ex date listed on BSE website was 14th July.
Based on my understanding that once Exdate is there the benefits accrue to the existing shareholders, I sold majority of my shares on 14/15th July. As an example, I was holding 100 shares on 12th July. I sold 40 shares on 14th July and 20 shares on 15th July. The shares were deducted from my demat account the same day of selling and hence on 16th July my holding was 40 shares in demat account.
When the dividend was credited to my account, I was surprised to see the dividend being paid only on 40 shares (holding as of 16th July). Same way buyback entitlement was calculated and given on the shares being held on 16th July – 40 shares only.
This was contrary to my expectations and I reached out to the company and registrar. They have given the following answer:
1)For Buyback – The shares have to be in my account as on close of Record date. I argued but they have stuck to their point as of now.
2)For Dividend – They are still searching for the answer and taking guidance from their seniors about this.
I believe that prima-facie there position for both Buyback and Dividend is incorrect. I am sure about the Dividend part but want to get views on if Buyback entitlement has any different norms than the EXdate. Also if any other boarder has experienced similar issue wrt Birlasoft or any other company earlier?
Further, if I want to complain and take this up further, is there any guidance which I can get – Who to complain to (Sebi, BSE/NSE/Any website), Contact details (Name/number/email) and any other feedback/suggestion?
Look forward to your response/guidance.
Thanks
Nikhil
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