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Q:  MAJOR CORPORATE BENEFITS
A: Normally companies announce corporate benefits at the end of the year on the occasion of their annual general meeting. Based on their past performance, companies declare dividends, bonus shares, etc. to their shareholders. Occasionally, companies announce right issue to raise additional capital from the existing shareholders. In the event of non-subscription by the existing shareholders, a company approaches capital market with a view to raise the funds.

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Q: How does an investor get himself entitled to corporate benefits?
A: The ownership of shares of companies traded on the stock exchanges is freely transferable by registration. However, shares are many times held by buyers without sending it for registration to the company. In order to be entitled for benefits such as dividend, bonus, and rights, etc. announced by the company, a buyer would need to send the shares for registration in his own name. The company announces cutoff dates from time to time. The list of members on the companies� registers as of these dates would be the shareholders entitled to the corporate benefits.