What would happen in the scenario when the No- Delivery is abolished?
The No- Delivery system has till now been used to ensure that the trades takes place at the prices which are reflective of the corporate benefits attached to the securities traded. The Exchanges have decided to abolish No-Delivery for the scrips which are traded on compulsory demat form and Book Closure or Record dates have fixed by the companies for corporate benefits like bonus dividend and where no corporate benefits are attached. This would come into effect from May 1, 2002. In such cases the Exchange would announce an Ex- date and the investors should quote the prices for the concerned scrips assuming the corporate benefits are not attached from that date onwards. However, the No- Delivery would continue to be applicable for all scrips where physical shares can be delivered and/or where the corporate benefits are other than referred to above.
