Am I Eligible for Dividends and Corporate Actions on MTF Holdings?

Am I Eligible for Dividends and Corporate Actions on MTF Holdings?

Yes. When you hold shares under the Margin Trading Facility (MTF) at FYERS, you remain fully eligible for dividends and corporate actions such as bonuses, rights issues, and stock splits. Even though MTF shares are pledged for margin, they continue to remain in your demat account.

As long as you hold the shares on the company’s record date, all applicable corporate action benefits will be credited to your demat or linked bank account, depending on the nature of the action.

What If...

ScenarioOutcome
You hold pledged shares on the record dateYou remain eligible for dividends, bonuses, rights, and all other benefits.
A dividend is announcedDividends will be credited directly to the client’s registered bank account.
Bonus or split shares are announcedBonus and split shares will be automatically credited to the client’s demat account.
A rights issue is announcedRights entitlements, if any, will also be made available to the client for subscription.
You sell the shares before the record dateYou will not receive corporate action benefits, since eligibility is based on record date holdings.
Always review the company’s record date and ex-date for corporate actions, since eligibility depends entirely on your holdings on those dates.

Last updated: 06 Apr 2026