ESMA · ESMA_QA_1910 Answer Published

Shares received under a bonus share issue or a share dividend distribution

Regulation
Short Selling Regulation (SSR) Regulation (EU) No 236/2012
Topic
Determination of net short position
Submitted
2012-09-13
Answered
2012-09-13
More Q&As on this regulation →

Question

Do shares received as a consequence of a bonus share issue or share dividend distribution fall to be treated as a long position for the purposes of calculating a net short position?

Answer

[ESMA70-145-408 SSR Q&A, Q&A 6.5] Yes, as shareholders receive shares that can be used to offset short positions taken in the same issuer with other financial instruments. This may happen when, for instance, a net short position is constituted by having a long position in cash and a short position in derivatives.
View original on European Securities and Markets Authority ↗

This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

Similar Q&As

Share dividend distribution and lending agreements

Answered 2012-09-13

Instruments giving claims to shares not yet issued (Subscription rights, convertible bonds)

Answered 2013-01-29

Shares in funds

Answered 2012-09-13

Issued share capital and saving shares

Answered 2013-01-29

Calculation of Net Short Positions in case of issuers with non-listed shares

Answered 2024-09-17

More Q&As on this topic

Calculation of Net Short Positions in case of issuers with non-listed shares

Answered 2024-09-17

Calculation of net short positions held through derivatives on sovereign debt

Answered 2013-01-29

Positions in UCITS

Answered 2013-01-29

Futures on a basket of sovereign bonds

Answered 2013-01-29

Credit Linked Notes

Answered 2013-01-29

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

Start free trial → Learn more

14-day free trial. No credit card required.