ATS Support · Corporate Actions

Corporate Actions – Dividend, Bonus, Split & Buyback

What happens to your shares during dividends, bonuses, splits, rights issues and buybacks — and exactly how to participate.

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Corporate actions are company events that affect your shares — dividends, bonus issues, stock splits, rights issues and buybacks. If you hold shares on the record date, dividends are credited to your bank account, and bonus or split shares are credited automatically to your demat account. Track upcoming events on the corporate actions calendar.

Types of corporate actions

ActionWhat happens
DividendCash credited to your registered bank account.
Bonus issueFree additional shares credited to demat; price adjusts.
Stock splitFace value sub-divided; more shares at a lower price.
Rights issueRight to buy extra shares at an offer price (ASBA/RTA).
BuybackCompany buys back shares; you can tender via ATS.

How you receive the benefit

  • Dividends — credited directly to your bank by the company/registrar if you hold on the record date.
  • Bonus / split — additional or sub-divided shares are credited automatically to your demat.
  • Buyback — eligible shareholders tender shares through the ATS platform during the buyback window.
  • Rights — apply for additional shares at the offer price through the rights-issue process.

Tax on corporate-action income

Dividends are taxable in your hands, and gains from tendering in a buyback or selling bonus/rights shares follow capital-gains rules — see our tax on stock trading guide.

Record date mattersYou must hold the shares in your demat on the record date to be eligible. Buying on or after the ex-date usually does not qualify you for that action.

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Frequently Asked Questions

Corporate actions are events initiated by a company that affect its shares — such as dividends, bonus issues, stock splits, rights issues and buybacks.

If you hold the shares on the record date, the dividend is credited directly to your registered bank account by the company or its registrar.

Additional or sub-divided shares are automatically credited to your demat account, with the price adjusting proportionately.

Eligible shareholders can tender shares in a buyback through the ATS platform during the buyback window.

If eligible, you receive rights entitlements and can apply for additional shares at the offer price through the rights-issue process (ASBA/RTA).

You can follow upcoming dividends, splits, bonuses and buybacks on the Corporate Actions page in our market section.

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Disclaimer

Investments in the securities market are subject to market risks. Read all related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities quoted are for illustration only and are not recommendatory. Past performance of any analyst recommendation is not indicative of future returns.

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