Corporate actions like rights issues, bonus issues, and stock splits change a company’s capital structure and require precise coordination with shareholders, depositories, and regulators. Mistakes or missing paperwork can delay processing, block demat credits, and attract queries from the Registrar of Companies. A professional RTA coordinates these filings and ensures back-office readiness so the corporate action is executed smoothly.
Rights Issue
A rights issue offers existing shareholders the option to buy additional shares in proportion to their holdings on a specified record date. The company sets the ratio and price, circulates the Letter of Offer, and accepts applications. The issuer/RTA must then submit the corporate action file to the depository within prescribed timelines so credits are processed automatically.
Documents Commonly Required: Based on standard NSDL/CDSL requirements, the common documents include:
• Board Resolution
• Shareholders’ Resolution / EGM Minutes (if required)
• Letter of Offer & Application Form
• In-principle Approval from Stock Exchange (for listed companies)
• PAS-3 (Return of Allotment) with ROC challan
• List of Allottees
• Corporate Action Request Letter
Bonus Issue
A bonus issue capitalizes a company's reserves to issue free additional shares to existing shareholders in a fixed ratio. The RTA prepares the allotment list based on the record date for the depository to credit the bonus shares directly to shareholder demat accounts. Accurate entitlement calculations are essential to avoid miscredits.
Documents Commonly Required: Based on standard NSDL/CDSL requirements, the common documents include:
• Board Resolution
• Shareholders’ Resolution
• Auditor’s Certificate (confirming the issue is from free reserves)
• PAS-3 (Return of Allotment)
• ROC Filing Acknowledgement
• List of Allottees
• Corporate Action Request Letter
Stock Split (Sub-division)
A stock split reduces the face value and increases the number of shares outstanding, while the aggregate capital remains the same. The RTA updates the register and sends the corporate action file to depositories to credit the split shares. Post-split, the RTA reconfirms holdings to keep reconciliations clean.
Documents Commonly Required: Based on standard NSDL/CDSL requirements, the common documents include:
• Board Resolution
• Shareholders’ Resolution
• Amended MOA/AOA (if applicable)
• Proof of ROC Filing for the split
• List of Allottees
• Corporate Action Request Letter (with revised ISIN details)
Preferential Allotment
A preferential allotment allows a company to issue securities to a select group of investors. This requires shareholder approval, a valuation report, and strict compliance with the Companies Act before shares can be credited to the allottees' demat accounts.
Documents Commonly Required: Based on standard NSDL/CDSL requirements, the common documents include:
• Board Resolution
• Shareholders’ Special Resolution
• Valuation Report
• PAS-3 (Return of Allotment)
• ROC Filing Acknowledgement
• List of Allottees
• Corporate Action Request Letter
How Nextgen Ensures a Smooth Process
Nextgen Share Registry Pvt Ltd (Nextgen RTA) compiles all required documents, prepares the depository corporate action file in the prescribed NSDL/CDSL format, and coordinates with all stakeholders. This seamless support ensures companies stay compliant, maintain investor confidence, and complete the process without unnecessary delays.
ABOUT NEXTGEN
At NextGen Share Registry, we specialize in ISIN generation for equities, preference shares, debentures, and AIFs with unmatched speed and accuracy. Our expertise extends to handling complex corporate actions and seamlessly organizing e-voting events for issuer companies, ensuring a hassle-free experience with the fastest turnaround time in the industry.