Dividend: Ex-dividend price of a share can’t be less than face value

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If the stock price closed below Rs 974, then the ex-dividend price on Wednesday would have been negative.

Synopsis

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.

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

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