Every corporate action is classified as either mandatory or voluntary and the company discloses this when it makes the announcement.
- Mandatory – Dividends, bonus issues, stock splits, and mergers. Applied automatically to all eligible shareholders on the record date. No action needed from your end.
- Voluntary – Rights issues and buybacks. You need to actively decide whether to participate within a specified deadline. If you don’t respond, you either miss the benefit or your shares remain unaffected depending on the action.
The corporate action announcement on BSE or NSE will clearly state the nature of the action, the record date, and whether any response is required. You can also track open corporate actions through your Samco account.
Easy & quick
Leave A Comment?