Allotment Advice in Share Market

When an individual invests in shares, debentures, or other securities offered by a company, he/she awaits the allotment advice. It is a crucial document that confirms the allotment of shares or other securities against an applicant’s request.

What is an Allotment Advice?

An allotment advice is a formal communication sent to successful applicants by a company. It confirms the allotment of shares or other securities against an applicant’s request. The allotment advice specifies the number of shares or securities allotted to the applicant along with their distinctive numbers. It also mentions the due date of the allotment money and the final date for the submission of share transfer deed.

Importance of Allotment Advice

The allotment advice serves as a legal document that confirms the allotment of shares or securities to the investor. It helps the investor keep track of his/her investments and avoid any confusion or discrepancy in the future. The allotment advice also serves as proof of the investor’s ownership of the allotted shares or securities.

Non-Negotiable in the Market

The allotment advice is a non-negotiable document, meaning that it cannot be traded in the market. The investor cannot sell or transfer his/her shares or securities based solely on the allotment advice. To trade in the market, the investor must first receive the share certificate or other transferable documents from the company.