News of Thursday, 28th September 2023
Small investors will get ‘big’ facility: can buy in pieces Expensive shares: New system is coming
Rs. 1000 can be invested in shares worth 1.10 lakhs
Mumbai Dt. 28: Small investors in the stock market will soon be able to buy expensive shares of other companies including MRF (Rs. 1,10,009.65) and Maruti (Rs. 10,690). For this, the government is working on making guidelines for buying fractional shares in India on the lines of America. It may be implemented soon.
In the current system an investor can buy at least one share of a company. The Company Law Committee had sought the introduction of fractional shares in its recommendation last year. Market regulator SEBI also showed interest in this. The Ministry of Company Affairs is now planning to amend the Companies Act to allow this. A stock exchange official said issues related to bonus shares and rights issue need to be resolved.
There are many such shares in the stock market, the price of which ranges from Rs 10,000 to Rs 1 lakh. For many small investors, buying them is beyond their means. In a fractional arrangement, the investor will have the opportunity to purchase shares in installments or pieces. For example, if the share price of a company is 50 thousand rupees, small investors can buy it even for 500 rupees. They will get one per cent stake. In the new system, expensive shares will be within the reach of ordinary investors. Not only this, the dividend yield will also increase. Many large companies offer bonuses and dividends to investors. Those who buy a small portion of the stock will also benefit.
Allowing fractional shares in the local stock market will increase the participation of small investors. Due to this, money will increase in the market and boom will be seen. Investors and companies will benefit.