About this Calculator
$Accurately adjust your stock prices for bonuses, right shares, and calculate net dividends. Select the relevant tab to perform precise calculations based on current Nepal Stock Exchange (NEPSE) and SEBON regulations.
Features
- 100% mathematically accurate calculations
- Up-to-date with SEBON & NEPSE broker tiers
- Instant client-side performance
- No data sent to server (100% private)
The Complete Guide to NEPSE Corporate Actions
Table of Contents
1. Understanding Bonus Shares & Right Shares
In the Nepal Stock Exchange (NEPSE), companies frequently distribute profits through corporate actions rather than direct cash payouts. The two most common mechanisms are Bonus Shares (stock dividends) and Right Shares (offerings to existing shareholders to buy more stock at par value).
When a company announces a high Bonus Share percentage, retail investors often mistakenly believe their portfolio value will jump linearly. However, due to market dilution, NEPSE executes a mandatory price adjustment on the book closure date. Our Corporate Action tools help you calculate the exact theoretical value of your holdings post-dilution.
2. How NEPSE Price Adjustment Works
The NEPSE price adjustment formula ensures that the total market capitalization of the company remains identical immediately before and after a stock split, bonus, or rights issuance.
Our Bonus Share Adjustment Calculator and Right Share Adjustment Calculator utilize the official SEBON (Securities Board of Nepal) formulas to instantly predict the exact opening price of the stock on Ex-Date. By inputting the Last Traded Price (LTP) and the declared percentage, investors can strategically decide whether it is mathematically optimal to buy before book closure, or wait for the adjusted price.
3. Cash Dividends and Tax Liabilities
Not all dividends are treated equally under Nepalese tax law. Cash dividends are subjected to a mandatory 5% tax deduction at the source. Furthermore, when companies issue Bonus Shares, investors must often pay the capital gains tax on the par value out of their own pocket if the accompanying cash dividend isn't sufficient to cover the tax burden.
The Net Dividend Calculator perfectly models these edge cases, calculating exactly how much physical cash will hit your linked bank account after all statutory MeroShare and CDSC deductions are applied.
4. Frequently Asked Questions (FAQ)
What is the formula for NEPSE Bonus Share adjustment?
The mathematical formula utilized by NEPSE is: Adjusted Price = Market Price Before Book Closure / (1 + Bonus Percentage). Our tools automate this calculation instantly.
How much tax is levied on cash dividends in Nepal?
The Government of Nepal mandates a flat 5% dividend tax deducted directly at the source (TDS) before the cash dividend is deposited into your bank account.
Why did I receive less cash dividend than announced?
Companies often deduct the tax liabilities of your Bonus Shares directly from your Cash Dividend. If the cash dividend is very small (e.g., 0.5%), it is usually entirely consumed by the tax required for the Bonus Shares.