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Calculation of Frequently Traded Shares


Frequently Traded Shares:

As per Securities And Exchange Board Of India (Substantial Acquisition Of Shares And Takeovers) Regulations, 2011

Means shares of a target company, in which the traded turnover on any stock exchange during the 12 calendar months preceding the calendar month in which the public announcement is required to be made under these regulations is at least ten per cent of the total number of shares of such class of the target company;

For example Public announcement has been made on February 5th , 2019 then will see the traded turnover from February 1st, 2018 to January 31st, 2019. NSE and BSE always displayed the traded turnover of the listed company on their exchange.

Provided that where the share capital of a particular class of shares of the target company is not identical throughout such period, the weighted average number of total shares of such class of the target company shall represent the total number of shares;

In continuation of above example if total shares of company on February 1st, 2018 is 6,00,00,000 and on November 1st, 2018 company allotted 3,00,00,000 shares more so now total shares is 9,00,00,000

As we see the total shares is not identical throughout the year so we will calculate weighted average of total shares like:

No. of shares
Weight
Total
6,00,00,000
0.75 (as this is for 9 months)(9/12)
4,50,00,000
9,00,00,000
0.25 (as this is for 3 months)(3/12)
2,25,00,000
Weighted average
6,75,00,000


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