Skip to content

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

A company declares a bonus issue of 1 share for every 4 held. Mr. Kapoor holds 600 shares in his demat account on the record date. After the bonus credit, how many shares will he hold in total?

Mr. Kapoor will hold 750 shares. A 1:4 bonus gives one new share for every four held, so 600 shares earn 150 bonus shares, and adding these to the original 600 gives a total holding of 750 shares.

  1. A750Correct
  2. B800
  3. C650
  4. D900

Explanation

Bonus shares = 600 x 1/4 = 150. Total = 600 + 150 = 750. The option 900 wrongly treats the ratio as 1:2, 800 as 1:3, and 650 uses only 50 bonus shares.

Did you get it right without looking?

One question tells you little. A timed set on Special Services - Public Offering / Corporate Actions shows your real accuracy, how long you take and where you lose marks.

Practise Special Services - Public Offering / Corporate ActionsFree diagnostic mock

More Special Services - Public Offering / Corporate Actions questions