Not all corporate actions work the same way. Some are applied automatically to all eligible shareholders, while others require you to actively decide whether to participate.
Mandatory – No action needed from your end
These are applied automatically to all shareholders on record as of the record date. You don’t need to apply, approve, or respond.
- Dividends
- Bonus issues
- Stock splits
- Mergers and amalgamations (in most cases)
Voluntary – You choose whether to participate
These require you to take action within a specified deadline. If you don’t respond in time, you either miss the benefit or your shares remain unaffected depending on the action.
- Rights issue – you can subscribe, renounce, or ignore
- Buyback – you choose whether to tender your shares or hold
One thing to keep in mind
Even for mandatory actions, being on the shareholder register as of the record date is what determines your eligibility. If you buy shares after the record date, you won’t be eligible for that particular corporate action.
Easy & quick
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