1.4 Dividend Processing for Beneficiaries

This topic provides information on dividend processing for beneficiaries details.

When an authorized dividend is processed in FCIS, the first step is the identification of holdings eligible for dividend, also called the freeze holdings process. This process is first executed for non-depository unit holder accounts.

After this, the freeze holdings process is executed for the beneficiaries in each depositary unit holder account, for each fund in which the beneficiaries are eligible for dividend. The positions information contained in the BENPOS file is used for identifying the freeze held units for the beneficiaries.

After the freeze holding units are identified, the dividend is computed and the positions are updated accordingly. The income distribution option specified for the fund-ISIN association, for each fund in which the beneficiaries receive dividends, is used to determine whether the dividend is to be paid out or reinvested.