InvestorQ : How are corporate actions treated in a demat account?
Aditi Sharma made post

How are corporate actions treated in a demat account?

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Priyanka N answered.
3 years ago
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Corporate actions like a bonus splits and even dividend payments have become a lot simpler under demat. The bonus shares and the split shares are automatically credited to your demat account if your name appears on the record date. You just need to ensure that the shares are credited to your demat account on the record date. So your purchase of shares should be done before the ex-dividend or ex-split date. Even dividends are automatically credited to your bank account. That is a big relief for investors.
Interfacing with the companies has actually become a lot simpler under the demat account arrangement. If you were having investments in 12 companies in a physical form, then a change of address will have to be individually intimated to the registrars of each of these companies. Demat solves this problem substantially. You just write once to your depository participant and the details of your changed address are automatically downloaded to all your investments. It is as simple as that. You do not have to correspond directly to each company or RTA. Also, in case of a dividend, you can change your bank mandate just once and after that, the process is automatically for all the companies in your demat account.
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