FAQ Page

After registration client can buy shares of any listed companies

No, CD account for Bank and CD account for Shares are two different things.

CD account for Shares stands for Central Depositary Account.

A bonus issue is a process where money from a company’s reserves is converted into issued capital, which is then disturbed to shareholders as new shares, in proportion to their original holdings.

A rights issue is an invitation from a company to its existing shareholders to purchase additional shares proportionate to their existing holding in the company at a price lesser than the Market Price.

A dividend is the part of a company’s profit after tax distributed to shareholders.

Depending on its profit, a company pays dividends at the end of its Calendar year (called final dividend) or during interim period (half yearly).

REWARDS include:

• Entitlement to receive dividends;
• Gain from capital appreciation;
• Participate in bonus & rights issues;
• Liquidity: and
• As owners of the company, Shareholders can also participate in decision making process during the AGM through voting rights.

RISKS are:

• Capital Loss; and
• Liquidation of the Company.

The minimum shares one can purchase is ONE share and the price can be placed within 5% range of market price.

• Market Price: Last traded price
• Face Value: Nu.10 per share

Trading Days:

The trade get executed Five times a day and five days a week excluding public holidays.

Procedures:

1. Register with Broker
   • CD Account Opening Form
   • Client Agreement Form
2. Place order – Order Form
3. After order get executed it takes Transaction day +2 more working days transfer of ownership
4. Once order gets executed it cannot be cancelled, any changes has to be notify to the Broker before the execution.
5. Deposit money as advised by the broker or fill up debit authorization form of BNB account.

Documents Required:

1. CID Copy
2. Three Legal Stamps
3. Witness

The broker will then place order at the exchange. The order will remain in the ATS till it gets a matching sell order.

The registration forms needs to be submitted in original to the nearest BNB office.

People residing outside country can submit the forms through email or upon their authorization can let third party fill forms on their behalf. For those who are outside country legal stamp will be pasted by Broker, upon receive of the form.

A broker is a member of the Stock Exchange who has a license from the Royal Monetary Authority to buy or sell securities on behalf of his/her clients and is the direct link between the client and the Exchange. A commission of 1% on both buy and sell is levied by the brokers for their services.

Approach the Brokers for buy or sell.

A securities includes (shares, stock, scrip, bonds, debenture stock or other marketable securities), as defined by the The Companies Act 2000 and the Financial Services Act 2011 to be securities that is available for trade on a stock exchange. It can be of equity and debt securities.

A share of stock represents a part ownership of a company. For example, if you buy 10,000 shares in a company that has issued 100,000 shares, you own 10% of that company.