InvestorQ : I have a query. I have pledged shares to a financer. Who gets the dividends and bonus shares in case of pledged shares?
Bhavik Nehru made post

I have a query. I have pledged shares to a financer. Who gets the dividends and bonus shares in case of pledged shares?

Answer
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Angel dcosta answered.
2 years ago


Even if you have pledged shares to a financer, the bonuses, dividends, and splits will still come to you only. The process will work as follows:
  • The holdings as of the record date/book closure, (including those holdings which are pledged) are considered for computing bonus entitlements.
  • At the time of effecting the credit of bonus shares, the system checks whether the pledge is still open or closed.
  • Where pledge orders are not closed/invoked or partially closed/invoked, the bonus entitlements in such cases are credited to the pledgor’s account with pledge marked in favour of the pledgee.
  • If the pledge is closed/invoked fully, the bonus entitlements will be credited to the pledgor’s account as free balances.
  • The securities arising out of corporate actions like split, mergers, consolidation, etc. will be credited to the account of the pledgor with pledge marked in favour of the pledgee.