Frequently Asked Questions

Dividends are payments out of operating profits by a company to Shareholders. They are paid net of withholding tax (currently 10% of the gross amount). It may be paid once a year (final dividend) or twice/more in a year (interim(s) & final dividend). Dividends are approved by shareholders at Annual General Meetings and by Board of Directors for interim dividends

Prior to announcing year-end results of companies, dates are set out for the Closure of Register of members for the purpose of payment of dividend and issue of scrip popularly known as 'Bonus'. These dates will determine the qualification for dividends and scrips.

Hence, "cum div" or "cum scrip" means purchases before the Closure of Register (or sales after the closure) will be entitled to all the benefits payable on the investment while "ex div" or "ex scrip" means purchases made after the entitlements were declared (or sales before closure).

Conversely, if you sell your shares before the Closure of Register, you sold so to say "ex div" and "ex scrip" and hence you will not enjoy the dividend or scrip to be issued at the coming AGM. The reverse is the case when you sell your share "cum div" and cum scrip"

Shareholders have the right to:
1. Receive dividends (if payable).
2. Key company information (such as Annual Reports/Accounts).
3. Attend Annual General Meetings or Extra-Ordinary Meetings.
4. Vote and be voted for on certain affairs of the company.

SAR simply means Shareholder’s attention required. The shareholder is to visit the registrar in person.

BCR simply means Bankers confirmation of signature is required. This document is obtained from the shareholder’s banker and forwarded to the registrar with a cover letter.

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