Scrip Dividend (DVSC)

SFTR Report - NEWT | Corporate Action Cluster - Addition Sec on Loan | Cash Move - N>

Status: Best Practice Finalised, Last Updated: 24/05/2021

SFTR Report - NEWT | Corporate Action Cluster - Addition Sec on Loan | Cash Move - N

Description:
Dividend or interest paid in the form of scrip - the company creates new share capital in exchange for the dividend.

Best Practice:
When booking a Scrip Dividend, a loan contract should be booked in addition to the current contract with your counterparty on the pay date of the event. (COAC-61)