Equity Shares and Capital

EPS stands for Earnings Per Share, a key financial ratio calculated by dividing a company's net income (minus preferred dividends) by the number of outstanding common shares. It's used to measure profitability on a per-share basis and is important for investors comparing companies.

Dividend per share is 9% of Rs. 20 = Rs. 1.80. The man wants this Rs. 1.80 to represent a 12% return on his investment (Market Value). So, 0.12 * MV = 1.80, which gives MV = 1.80 / 0.12 = 15. Other values do not yield a 12% return.

A 12% stock means a Rs.100 face value yields Rs.12. If the market yield is 10%, then 10% of the Market Value = Rs.12. Market Value = 12 / 0.10 = 120. Thus, the stock is quoted at 120.

Dividend per share = 15% of Rs.150 = Rs.22.50. The man gets a 10% return on his investment price (P). So, 10% of P = 22.50. Solving for P gives P = 22.50 / 0.10 = Rs.225. Other options do not satisfy the 10% yield requirement.

Initial income: 250 shares * Rs.10 * 10% = Rs.250. Sale proceeds: 250 * Rs.20 = Rs.5000. New investment: Rs.5000 / Rs.4 = 1250 shares. New income: 1250 * Rs.5 * 4% = Rs.250. The difference in income is Rs.250 - Rs.250 = 0. Since 0 is not listed, 'None of these' is correct.

As per SEBI (Securities and Exchange Board of India) regulations, brokers must deliver shares to investors within 48 hours of pay-out. This is part of the settlement cycle regulations to ensure timely delivery of securities to investors.

Electronic shares can be converted back to physical form through rematerialisation. The Rematerialisation Request Form must be submitted to the depository participant, who processes it. Transmission form is for ownership transfer due to death, while rematerialisation is not done directly with the issuer.

To answer this question, we need to understand the concept of dematerialisation.

Dematerialisation is the process of converting physical share certificates into electronic form. It allows investors to hold and trade shares in electronic form, eliminating the need for physical certificates.

Let's go through each option to understand why it is correct or incorrect:

Option A) NSDL doesn't charge its depository participants for dematerialisation - This statement is true. NSDL (National Securities Depository Limited) is one of the two depositories in India, and it does not charge its depository participants (DPs) for the process of dematerialisation. However, DPs may charge their clients for the dematerialisation process.

Option B) Odd lot shares can be dematerialised - This statement is true. Odd lot shares, which are shares in quantities other than the standard market lot, can be dematerialised. Dematerialisation of odd lot shares helps in facilitating trading and settlement of these shares.

Option C) Investor has to pay stamp duty for dematerialisation of shares - This statement is false. Stamp duty is not applicable for the dematerialisation of shares. Stamp duty is typically applicable when transferring shares, but not for the process of dematerialisation.

Option D) Shares not registered in the name of the concerned account holder (street name shares) can't be dematerialised - This statement is true. Shares that are not registered in the name of the concerned account holder, also known as street name shares, cannot be directly dematerialised. These shares need to be registered in the name of the account holder before they can be dematerialised.

Therefore, the false statement regarding dematerialisation is Option C) Investor has to pay stamp duty for dematerialisation of shares.

The correct answer is C.

For shares held in demat form, the issuing company declares dividends. The depository participant only holds the shares in demat form, while NSDL is the depository infrastructure and SEBI is the regulator. The dividend comes from the issuer regardless of holding form.

Corporate benefits for pledged securities flow to the pledgor (original owner), not the pledgee. The pledgee only has a charge on the shares, not ownership rights. The discretion of parties or issuing company doesn't override this default position.

For public offers where shares are applied in demat form, the allotment advice or refund warrant is sent by the issuer/registrar and transfer agents. The depository participant only facilitates holding shares in demat, while NSDL is the infrastructure provider and SEBI is the regulator.

In rematerialization, the issuer or its R&T Agent issues physical share certificates and sends them directly to the investor. The depository (NSDL) and depository participants are not involved in the certificate delivery process. This reverses dematerialization where certificates are converted to electronic form.

For rights issues of demat securities, the issuer or its R&T Agent sends the rights issue form directly to investors. NSDL only maintains electronic holdings but doesn't issue rights forms. The depository participant provides account services but doesn't handle rights allotments. This follows the standard corporate action process.

This question asks about the dividend amount declared by TCS per share. Among the options, Rs 2 per share is the correct answer. The other options (8000, 9000, and 0) are unrealistic - dividend declarations of Rs 8000 or 9000 per share would be extraordinarily high for IT companies, while Rs 0 would mean no dividend was declared at all. A dividend of Rs 2-3 per share is typical for large IT companies like TCS.