Mumbai: Stock exchanges have said if the stock price of a company goes below its face value ex-dividend, the face value would be the market price. The new rule was brought in after Majesco last week announced a record Rs 974 dividend per share which was lower than the prevailing market price. That raised the possibility of the stock price going negative on ex- dividend day.The BSE said in a circular that if the closing price one day prior to the ex-dividend day minus dividend amount is less than or equal to the face value, the adjustment price will be face value of the stock. The new rule will be applicable from Wednesday.Shares of Majesco gained 1 per cent on Tuesday to close at Rs 985.45. The stock price adjusted for dividend on Wednesday will be Rs 985.45 minus Rs 974, which is Rs 11.45.If the stock price closed below Rs 974, then the ex-dividend price on Wednesday would have been negative. But under the new rule, the stock price cannot now go below the face value, which is Rs 5.
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Tuesday, December 22, 2020
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Orai is a city and a municipal board in Jalaun district in the Indian state of Uttar Pradesh. It is the district headquarters for Jalaun District.
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