2.1.10.1.2 Setting up Rules for Stock Dividend for Fund

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

To set up the guidelines for a stock 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 Stock Dividend. The following information is considered by default for stock dividends.
3. Since stock dividends are exempt from tax, the TDS Basis field has a default value, tax exempt, and is locked for data entry.
4. Income Distribution Setup options are not applicable for unit holders eligible for stock dividends, and the option Restrict IDS for Unit Holders is selected and cannot be changed. Also, the distribution mode for such dividends is taken by default to be Reinvestment.
5. EPU components are not applicable for stock dividends.
6. Specify the frequencies for declaration and payment of dividend, in the Dividend Declaration Frequency and Dividend Payment Frequency fields respectively.
7. Specify the rounding rules for dividend, in the Rounding Options and Rounding Precision fields.
8. Specify the basis upon which exchange rate for dividend will be obtained, in the Dividend Exchange Rate Basis field.
9. Specify the first dividend declaration date for the fund, in the First Dividend Declare Date field.
10. Specify the units to be considered for the record date (freeze holdings) for dividend eligibility, in the Units for Freeze Holding field.
11. If look-ahead dividend processing for holidays is to be applicable for stock 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 stock 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 stock dividends for the fund.