What is a stock split and how does it affect price?

A stock split increases the number of shares and lowers the price per share in the same ratio, keeping total market value unchanged. For example, a 1:5 split turns 1 share into 5 at one-fifth the price. Liquidity often improves, spreads can widen at the open, and charts reset accordingly.

How do I qualify for a split or bonus shares in India?

You must own the stock before the ex-date so your name appears on the record date under T+1 settlement. Buying on or after the ex-date will not qualify. Check broker notices for cut-off times, and verify the ex-date India schedule on exchange announcements or company filings.

What happens on the dividend ex-date?

On the dividend ex-date, the stock typically opens lower by about the dividend amount since new buyers no longer qualify for the payout. Short-term price action may differ if broader market sentiment is strong. Ensure you purchased the shares before the ex-date to be eligible for the dividend.

Are stock splits or bonus issues taxable in India?

A stock split or bonus issue is not a taxable event by itself. Your total investment value does not change, but your per-share cost gets adjusted for future capital gains. Dividends are taxable at your income slab, and TDS may apply as per current rules. Keep records for tax filing.

Global Market Insights

India Stock Splits March 8: TANFAC, Hindusthan Urban to Trade Ex-Split Next Week

ByDanny Kontos March 8, 2026

India’s corporate action calendar is busy next week, led by stock split events at TANFAC Industries on 9 March and Hindusthan Urban Infrastructure on 13 March. Several names also line up for ex-bonus moves, including Cupid and Frontier Springs, while SBI Cards, Indian Oil, Sun TV and IRFC approach dividend ex-date. Under T+1 settlement, ex-date India rules shift prices and volumes as traders position a day before record dates. We outline the key dates, how a stock split and bonus change quote math, and smart trade setups for the week.