2.1.10.1.1 Setting up Rules for Cash Dividend for Fund

This topic provides information on setting up rules for cash dividend for fund.

To set up the guidelines for a cash dividend for a fund in the Corporate Actions screen,

1. The ID of the fund and the Rule Effective Date are filled in from the Fund Demographics screen.
2. In the Corporate Action type field, select Cash Dividend. If you are defining a cash dividend for capital gains, choose Cash Dividend – Capital Gains. For a cash dividend for income, choose Cash Dividend – Income.
3. Specify the frequencies for declaration and payment of dividend, in the Dividend Declaration Frequency and Dividend Payment Frequency fields respectively.
4. Specify the rounding rules for dividend, in the Rounding Options and Rounding Precision fields.
5. Specify the default mode of distribution for the cash dividend – payment by cheque, transfer or reinvestment.
6. Specify the basis upon which exchange rate for dividend will be obtained, in the Dividend Exchange Rate Basis field.
7. Specify the first dividend declaration date for the fund, in the First Dividend Declare Date field.
8. Specify the tax ID for the fund, as well as the basis for tax deduction at source, in the TDS Basis field.
9. Specify the units to be considered for the record date (freeze holdings) for dividend eligibility, in the Units for Freeze Holding field.
10. If EPU components are applicable for the fund, select the Allow EPU Component Setup option and specify the EPU Lot. The default value for EPU lot will be 1.
11. If look-ahead dividend processing for holidays is to be applicable for cash dividends for the fund, select the Look Ahead Processing option.
12. Specify a lag period for dividend payment, if necessary, in the Payment Lag field.
13. Specify a lag period for reinvestments, if necessary, in the Reinvestment Lag field.
14. Specify the holiday rule to be applicable for cash dividends for the fund.
15. In the Lead Times section, specify the lead times for freeze holdings, book closing, directors’ meeting and dividend payment, as applicable for cash dividends for the fund