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Demat Account
Corporate Action - Non Cash FAQs
Q1
If an investor has holdings in dematerialised form will the bonus/ rights issue against this be in the same form?
 
The bonus/rights issue against holding in dematerialized form can be either in the physical/dematerialised form as per the choice of the investor. If no choice is given, then by default the securities will be issued in the form they are currently held. Thus if a shareholder holds some shares in physical form and some others in demat, then bonus/rights shares will be received in both the forms in proportion to the holdings in each form. 
   
Q2
If an investor has holdings in physical form, can the bonus/ rights issue against this be in the dematerialised form?
 
Yes, if the investor chooses to receive this non cash corporate action in dematerialised form, they will be credited to the depository account. Please note that this facility will be available only in case of those companies linked up with NSDL.
   
Q3
If the investor has holdings in dematerialised form, should the bonus/ rights issue against them be credited to the same account? 
 
The option of which account to receive this non cash corporate action is with the investor. He can receive the same in the same account or a different account. This account details have to be intimated along with the intimation to R&T agent about the form (physical/ dematerialised) of allotment of bonus/ rights issue.
   
Q4
Will the rights issue form be sent by the depository or issuer?
 
As in the physical segment the issuer/ their R&T agent will mail the rights form directly to all investors including those in the electronic segment.
   
Q5
In case the investor requests for dematerialised securities in case of rights/ bonus issue without having a depository account, will NSDL open a beneficiary account to credit these?
 
No, in such case rights/ bonus would be issued in the physical form. Depository account can be opened only by the prospective account holder or his power of attorney.
   
Q6
How will fractional bonus entitlement be credited to the individual investors account?  
 
As in the physical segment, the fractional part of a bonus entitlement would be paid in cash and the remaining whole part would be credited to the investors account.
   
Q7
How will the investor confirm that he has received his bonus/ rights entitlement?
 
The statement of holding and transaction statement sent by the investors DP, will show the bonus/ rights credit into his account. This report is sent to the investor every fifteen days. In addition, an allotment advise will be send by the issuer/ their R&T agent for bonus/ rights entitlement.
   
 
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