Navigating WACC and EDIS on MeroShare: Essential Steps to Avoid Penalties After Selling Shares

Why WACC is required?

WACC (Weighted Average Cost of Capital) is a term that might sound complex, but its role in share transactions is quite straightforward. Here’s why WACC is crucial:

1. Regulatory Compliance: MeroShare requires you to perform WACC verification after selling shares to ensure all financial transactions are accounted for correctly. This step helps in maintaining transparency and accuracy in the share trading process.
2. Avoiding Penalties: If WACC is not completed, you could face a 20% closeout penalty. This penalty is imposed to encourage investors to follow the proper procedures and ensure all transactions are correctly reported.

What Is EDIS and Why Is It Important?

EDIS (Electronic Delivery Instruction Slip) is an electronic process used to transfer shares from one demat account to another. Here’s why EDIS is essential:

1. Share Transfer Verification: EDIS ensures that the shares you’ve sold are accurately transferred to the buyer’s account. It’s a confirmation step that verifies the transaction and prevents any discrepancies in share ownership.
2. Penalty Prevention: Failing to complete the EDIS process on time can also lead to a penalty. It’s a critical step to ensure that the sale is recorded properly and the shares are transferred without issues.

Step-by-Step Guide to Completing WACC and EDIS

1. Completing WACC on MeroShare

1. Login to MeroShare: Access the MeroShare website or app and log in using your credentials.
2. Navigate to 'My Purchase Source': After logging in, go to the "My Purchase Source" section. This is where you can manage and verify your share transactions.
3. Enter the Scrip Details: Enter the scrip (share code) of the shares you’ve sold into the search bar and click "Search."
4. Select the Scrip: Choose the appropriate scrip from the search results and proceed with the process.
5. Price Verification: Check the box to declare the price verification. This step confirms that the price details of the sold shares are accurate and up-to-date.
6. Update and Confirm: Click “Update” to finalize the WACC process. This ensures your sale is properly recorded, avoiding any potential penalties.

2. Completing EDIS on MeroShare

1. Go to 'My EDIS': In MeroShare, navigate to the “My EDIS” section and select “Transfer Shares.”
2. Verify the List: Check the list of shares to be transferred. Ensure all details are correct and the shares listed match the ones you’ve sold.
3. Declare and Confirm: Check the box to agree with the declaration. Confirm the transaction to complete the EDIS process.
4. Avoid Penalties: It’s crucial to complete EDIS promptly. Delays can result in penalties, impacting your returns and causing unnecessary complications.

What to Expect After Completing the Processes

• Payment Receipt: After selling shares, payment will be processed and should be received within a few days. Ensure that all WACC and EDIS steps are completed to avoid any delays or issues with payment.
• Handling More Shares than Existing: If you sell more shares than you currently hold, make sure to address this discrepancy promptly to avoid potential penalties or transaction issues.

Handling WACC and EDIS correctly is essential for smooth share transactions and avoiding penalties. By following the steps outlined above, you can ensure that your share sales are processed efficiently and in compliance with regulations.

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