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NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Public Offering / Corporate Actions

A company announces a bonus issue of 1 equity share for every 2 shares held, with a record date fixed. Ms. Meera Iyer holds 600 shares in her demat account on the record date. How many bonus shares will be credited to her account?

She receives 300 bonus shares. A 1:2 bonus ratio gives one additional share for every two shares held on the record date, so 600 shares divided by two equals 300 new shares credited to her demat account.

  1. A200 shares
  2. B300 sharesCorrect
  3. C600 shares
  4. D1,200 shares

Explanation

A 1:2 bonus means 1 new share for every 2 held. 600 / 2 = 300 bonus shares. Crediting 200 would wrongly treat the ratio as 1 for 3, while 600 or 1,200 would confuse bonus with a 1:1 or 2:1 ratio.

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