n NISM Certifications
X NISM Series X
Medium

In the context of a demerger, the period of holding shares of the resulting company shall be counted from which specific date?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    From the date of Demerger

  2. B

    From the date of application for allotment of shares in demerged company

  3. C

    From the date of allotment of shares in resulting company

  4. From the date of allotment of shares in demerged company

    Correct answer

Why this is the answer

In case of a demerger, the period of holding is counted from the date when the shares in the demerged company are allotted, not from the date of the demerger itself, ensuring the continuity of holding rights from the actual allotment date.

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