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When can I get the benefit of the corporate actions like dividend, bonus, etc. for the shares held in the MTF account?

Corporate Action Benefits in MTF Account

Corporate action benefits in a Margin Trading Facility (MTF) account depend on whether the shares are pledged or fully paid for:

  • Dividends: Credited to your account even if shares are pledged, as long as you hold them on the record date.
  • Bonus Shares and Stock Splits: These are initially credited to the Flattrade (Broker) collateral account. You must unpledge and fully pay for shares to receive them in your demat account.
  • Rights Issue: You are eligible for rights entitlement but may need to clear dues before applying for additional shares.
  • Buybacks: Pledged shares may not be eligible unless fully unpledged before the record date.

To receive full benefits, ensure shares are fully paid for and unpledged before the corporate action record date.