Study the following case/situation and express your opinion. (a). How will Mr. S get his dividend?

Question

Study the following case/situation and express your opinion.

Mr. S. holds 50 shares of Peculiar Co. Ltd in Demat form. The company has declared a dividend of Rs 5. Per-share and Bonus of 1 : 1 to its shareholders.

(a). How will Mr. S get his dividend?

(b). Will he get a Bonus share in Physical or Demat?

(c). Who is entitled to dividend and Bonus: Mr. S or the depository? (NSDL in this case).

Answer 1

(a) Mr. S will get his dividend credited directly to his Demat A/c.

(b) He will get Bonus Share in his Demat A/c.

(c) Mr. S is entitled to dividends and Bonuses through the depository services.