Corporate Actions
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Rights
You will receive corporate action (as announced by the issuing company) for securities held in demat form.
Procedure
- Cash corporate action (dividend, interest, etc.)
- Issuer / their R&T agent directly forwards the dividend warrant/ interest to the depository account holder. NSDL does not handle funds. The issuer/ their R&T Agent calculates the benefits due to you on the basis of ownership data forwarded by NSDL.
- In the future, NSDL intends to play a direct role in distribution of cash corporate actions. On a pilot basis, NSDL had extended the dividend distribution service to shareholders of BSES. NSDL had arranged to directly credit the bank account of shareholders holding shares in demat form. The bank account details were as provided by shareholders in the depository
account opening form.
- Non cash corporate action (bonus, rights, etc.)
- Issuer / their R&T agent would arrange to credit your depository account with bonus/rights securities to the extent of your entitlement on the basis of ownership data forwarded by NSDL.
Points To Remember
- Securities lying in the clearing account of the brokers are not entitled to any corporate benefits. In case securities bought by you are in your broker’s clearing account, ensure that they are transferred to your depository account before book closure/ record date.
- NSDL does not handle cash corporate actions. In case of non-receipt of the same, contact the issuer/ their R&T agent. In future, when NSDL handles cash corporate actions, you may contact NSDL in case of non-receipt of the same.
- In case you wish to avail of the ECS facility for receiving your cash corporate action, you may do so by informing the issuer/ their R&T Agent (provided the issuer gives this facility). You will need to inform the company even if you were availing this facility for your physical securities which were dematerialised.
- Ensure that you give your bank particulars correctly in the account opening form. This would be printed on the dividend warrant.
- In case of right/ bonus entitlement, irrespective of the form of your existing holding, you have to intimate issuer/ their R&T agent your choice of the form (physical/ demat) in which you would prefer to receive your right / bonus securities and the client id and DP id of the account in which you would like to have the securities credited. Although this depository account can be different from the account in
which your existing securities are held, they should be in the same combination of names as the depository account where your existing securities are held. If there is any mistake in your depository account details mentioned in the rights application/ intimation letter indicating the choice of form of bonus securities, you would receive physical securities directly from the issuer/ their R&T agent. - In case you have not intimated issuer/ their R&T agent your choice of the form (physical/ demat) in which you would prefer to receive your right / bonus securities, you will get your non-cash corporate benefits in the form of your original holdings.
- In case of rights issue, the rights issue form will be forwarded by the issuer/ their R&T Agent.
- In case of problem in credit in your depository account, contact your DP. If they fail to resolve your problem, you may contact NSDL.
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