Corporate actions like dividends, bonus shares, stock splits, rights issues, and mergers are credited to your Demat account based on specific timelines.
- Bonus Shares & Stock Splits:
- Usually reflect within 1-2 weeks after the record date.
- In some cases, it may take longer depending on the company’s processing and depository (NSDL/CDSL).
- Dividends (Cash Payouts):
- Credited directly to your bank account linked with your Demat account.
- Companies typically pay dividends within 30 days of the record date.
- Rights Issue & Buybacks:
- Rights issue shares appear in holdings after you apply and they are allotted, usually within 15-20 days of the issue closing.
- Buyback transactions reflect after the company processes and accepts the shares, which usually takes 2-3 weeks.
- Mergers & Acquisitions:
- If your holdings are converted due to a merger or acquisition, the new shares will be credited after the corporate action process is completed.
- This process can take a few weeks to months.