Stock price of Siddhartha Equity fund fall below par value of Rs. 10 After adjustment for dividend. The adjusted price of SEF is Rs. 8.90 for 11% cash dividend which is below par of Rs. 10.
Now, its time to think by authority while adjustment for stock price for dividend. While adjustment if price fall below par, there is no meaning of dividend. There is no any advantage for shareholders if price fall below par.
Adjustment of cash dividend done, when dividend announced is more than 10% of stock price before book close date. Adjustment rule is same as Stock Dividend.
