National Securities Depository Limited
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Corporate Actions

Corporate actions are benefits given by a company to its investors. These may be either monetary benefits like dividend, interest or non-monetary benefits like bonus, rights, etc. NSDL facilitates distribution of corporate benefits.

Monetary benefits (dividends etc)

NSDL will give the beneficiary ownership details to the Issuer/R & T Agent. The Issuer/R & T Agent will carry out the necessary processing and the distribution of such benefits will be outside the system.

Non-monetary benefits (rights bonus etc)

NSDL will give the beneficiary ownership details to the Issuer/ R & T Agent. The Issuer/R & T Agent will carry out the necessary processing and upload the beneficiary ownership details to NSDL. NSDL will then credit the beneficiary owners' accounts by downloading the data to the DPs.

  • NSDL will inform the DPs about the record date/book closure as announced by the Issuer for the corporate action. NSDL will also inform the DPs about the no-delivery period as announced by the Clearing Corporation / Clearing House and the procedure to be followed thereof through a circular.
  • On receipt of information about the book closure/record date, the DP will take care :
    • To update the changes in tax status, bank details, change of address etc. in the beneficial owners' accounts well in advance of the book closure/record date.
    • To clear positions in all the clearing accounts by transferring the relevant securities to relevant beneficiary accounts well in advance of the book closure/record date. The balances lying in the Clearing Accounts are reported to Issuer/R&T agent as transit account position.
  • NSDL will provide the details of the beneficial owners and their holdings as on the EOD of the record date or the EOD on the business day prior to commencement of book closure to the Issuer/R&T agent.
  • The Issuer/R&T agent will distribute dividend, interest and other monetary benefits directly to the beneficial owners on the basis of list provided by NSDL.
  • NSDL will inform the DPs about the record date/book closure as announced by the Issuers for the corporate actions. NSDL will also inform the no-delivery period as announced by the Clearing Corporation / Clearing House and the procedure to be followed thereof by issuing a circular.
  • On receipt of information about the book closure/record date, the DP will take care :
    • To update the changes in tax status, bank details, change of address etc. in the beneficial owners accounts well in advance of the book closure/record date.
    • To clear positions in all the clearing accounts by transferring the relevant securities to relevant beneficiary accounts well in advance of the book closure/record date. The balances lying in the Clearing Accounts will be reported to Issuer/R&T agent as transit account position.
  • NSDL will provide the details of the beneficial owners and their holdings as on the EOD of the record date or the EOD on the business day prior to commencement of book closure to the Issuer/R&T agent.
  • The Issuer/R&T agent will provide an option to the shareholders to be allotted securities either in physical or electronic form. The investors who opt for electronic securities will indicate the DP Id and the beneficial owner account number in the form and send it to the Issuer/R&T agent.
  • If investor does not make any choice of form in which these corporate benefits are to be received, then the Issuer/R & T Agent will issue securities in the form in which the investor holds original securities. Even the investors who hold original shares in physical form can opt for corporate benefits in demat form.
  • The Issuer/R&T agent will provide allotment details and the date on which the necessary credit entries are to be made in the accounts of the beneficial owners (referred to as execution date) to NSDL.
  • NSDL will perform the necessary bookings and the relevant credit entries are booked in the DPM on the execution date.
  • The DP will give the statement of holdings and transaction statement to the beneficial owners, giving the updated positions after the corporate action.
  • Investor must ensure that securities purchased by him are transferred to his account from the brokers pool account before the record date or book closure date. This facilitates receipt of corporate actions directly without any problem.
  • The investor who holds securities in physical form or requires securities in a different account or who acquires rights from original holder and opts for non-cash corporate benefits (bonus, rights issue etc) in demat form must correctly indicate his client-Id, DP name and DP-Id to ensure that his non-cash corporate benefits are electronically credited into his account. The investor must also ensure that the name in which the depository account has been opened matches with the name appearing in the records of the issuer/ registrar.