Reverse share split
The general meeting of a private limited company may decide to merge shares in a certain specified ratio, for example three shares will be exchanged for one new share (3:1). The total share capital will remain unchanged.
Where can you find out if you have shares in such companies?
The minutes from the general meeting will specify that the reverse share split has been approved. The original input value will depend on how the shares were acquired prior to the reverse share split.
How is the input value affected?
The input value for the shares is the same as the total original input value for the shares that have been consolidated into a single new share.
The total acquisition value for the shareholding will remain unchanged.