19.7 Maintain Stock Dividend Details

This topic describes the systematic instruction to maintain stock dividend details.

In the Stock Dividend or Bonus Definition screen, you can maintain details of the stock dividend declaration event, for security. The essential details that you need to capture for security include the resultant Security ID and the dispose fraction. Details like the stock to the cash price, the issuer pay currency and the end of exercise date can be captured only if you specify that stock is to be converted to cash.

1. On the Home page, specify SEDXDVDF in the text box, and click next arrow.

   Securities Stock Dividend Definition is displayed.

   Figure 19-11 Securities Stock Dividend Definition

   
   Description of "Figure 19-11 Securities Stock Dividend Definition"

   When you click on the new icon the system automatically assigns a unique internal action ID to the corporate event. The system date is defaulted as the date on which the dividend event was announced. However the Announcement Date or the date on which the event was declared can be changed to a previous date.

2. Click New on the tool bar to maintain deals of new declaration.

   If you are calling an event record that has already been created, click on Summary view. The details of the existing event records will be displayed in a tabular form. Specify the fields.

   Table 19-9 Cash Dividend Definition

   Field	Description
   Corporate Action Identification	This is the system generated ID to uniquely identify the declaration of Stock Dividend.
   External Corporate Action Identification	This is the Id assigned to the event at the time of event declaration. Enter the Id associated with the event to uniquely identify it.
   Security Identification	Specify the code or ID of the equity-type security for which the dividend declaration is being defined. The codes displayed, in the pick list available for this field are picked up from the Security Definition screen.
   Security Issuer Reference	Indicate the issuer reference number for the stock dividend event.
   Announcement Date	This is the date on which the issuer would have declared the stock dividend event. Enter the announcement date of the event.
   Event Date	Enter the date on which the cash payment will be made by the issuer.
   Record Date	Enter the date on which the issuer determines the beneficiary eligible for the dividend based on the registered owner of the securities. The Record Date is computed from the ex days set up defined for the local market of issue.
   Resultant Security Identification	Indicate the security of the equity type in which shares would be awarded.
   Resultant Ratio and Dispose Fractions	Select the equity type of security in which shares should be awarded. After this, you are required to specify the ratio of, the quantity of the new security awarded to the number of current holdings, in the existing security. Also indicate how the fractional elements in the parent security should be handled. You can choose the following options:
   Stock to Cash Conversion	Check this option to convert the stock dividend declared to cash. In such a case you are required to specify, the date by which the stock to cash conversion option, is to be exercised. Also, specify the price per unit. This is the price at which the stock dividend would be converted into cash.
   Stock to Cash Price	Enter the price at which the stock dividend would be converted into cash.
   End of Exercise Date	Enter the date before which the stock to cash conversion option is to be exercised.
   Stock to Cash Action Identification	This is a unique event ID which is generated by the system on saving the Stock Dividend Definition record.
   Issuer Pay Currency	In case of stock to cash conversion, you can indicate the currency in which the issuer should make the cash payments. From the pick list available select the payment currency.
   Confirmed	Check this box to indicate that the occurrence of the event is confirmed.
   Confirmed Date	When you select the check-box, and save the record the confirmed date will be defaulted with the current date.
   Exchange Rate	When the issuer payment currency is different from the security currency, the exchange rate between the security currency and the payment currency has to be indicated. Specify the exchange rate.
   Exchange Rate Fixing Date	This is the date on which the exchange rate will be announced. Indicate the exchange rate announcement date. Note: You can enter a free format event narrative for the event being defined or leave this field blank. If you enter a free format text it will be associated with the event while generating SWIFT messages. After entering the relevant details click save icon in the toolbar or Save from the Actions Menu, to save the event record.

   Table 19-10 Options Table

   Options	Description
   Retain	The fractional units would be retained
   Round Up	Entitlements will be rounded up to the next full unit
   Round Down	Entitlements will be rounded down to the previous full unit
   Round standard	If the fractional unit is above 0.5, entitlements will be rounded up to the next full unit, otherwise the entitlements will be rounded down to the previous full unit.