Corporate Actions

Bonus Issues

Additional Stocks are allocated on the Ex-date.

Capital gain distribution

Cash payment is allocated on Ex-date for value Pay date.

Cash Dividends

Cash dividends are booked on the Pay date based on the holdings as one day prior to the Ex-date.

Dividend payments from Stock positions will be credited to the clients account with any applicable withholding taxes deducted.

Deletion of Open Orders as a Result of Corporate Actions

The day before a Corporate Action event is scheduled to take effect (the Ex-date), open orders are deleted for certain event types.

The following details the rules of behavior:

Event Type​
​Never delete orders ​Always delete orders ​Rule defined below
Tender offers​
x
Stock splits​
x​
Reversed stock split
x​
Bonus issues​
x​
Mandatory Mergers
x​
Spin offs
x​
Ticker changes
x​
De-listings​
x​
Cash dividends​
​x
Stock dividends
x​
Optional dividends​
x​
Right issues
x​
 

For dividends and rights issues, all open orders for the given instrument will be deleted if the change in the market price is calculated to be over 20% due to the Corporate Action event.

Dividend Options

The default payment form is cash. However, clients can elect to receive Stocks. The cash entitlements are booked at pay date based on Ex-Date holdings. The Stock entitlement will be allocated once the reinvestment rate is confirmed for value Pay Date.

For dividend option events with tradable coupons these will be allocated at ex-date. The default payment is stocks. Clients can however elect to receive cash.

For dividend options clients will be able to manually insert standing instructions at the individual security level.

Dividend reinvestment Plan (DRIP)

The default payment form is cash. However, clients can elect to receive Stocks. The cash entitlements are booked at pay date based on Ex-Date holdings. The Stock entitlement will be allocated once the reinvestment rate is confirmed for value Pay Date.

For dividend reinvestments clients will be able to manually insert standing instructions at the individual security level.

Exchange offer

For exchange offers, clients holding a position in their portfolio will have the possibility to elect prior to the deadline.

Fractional Compensation

A fractional stock is less than one full stock, and can arise as a result of a Corporate Action entitlement calculation.

For the following Corporate Actions, Saxo Capital Markets pays cash compensation for fractions whenever fraction compensation is applicable:

  • Stock splits
  • Reverse stock splits
  • Optional dividends on stock positions
  • Mergers

Liquidation

Holdings in the liquidated company will be removed. Liquidation proceeds, if any, will be allocated.

Mergers & Mergers with Elections

There are different outcomes for mandatory Mergers:

  1. Cash (distributed on Pay-Date)
  2. Stocks (distributed on Ex-Date)
  3. Mix of Cash & Stocks (distributed on Ex-date)

For mergers with elections, clients have the possibility to elect prior to the deadline.

New Positions in non-online traded Instruments

Sometimes a Corporate Action involves an instrument that is not tradable online with Saxo Capital Markets.

Under those circumstances, the procedures are as follows:
 
Positions in new instruments that are not tradable online, assigned as a result of a Corporate Action, are booked to the clients account. The instrument will be added to the client account for reporting purposes.

Priority Issue

Clients holding the stock as of Ex-date will be given the possibility to subscribe for new shares. The offer to purchase new shares is not transferable.

Rights Issues

Clients holding Stock positions will receive rights and can choose to sell the rights or subscribe to new Stocks. If Saxo Capital Markets has not received a response from clients by the reply deadline date stipulated by Saxo Capital Markets if possible, sell the rights on behalf of our clients before they expire.

If the rights are non-tradable, they will lapse and become worthless. The proceeds from the sale will be distributed to our clients, less standard commission for the account. The reason the Bank carries out this action is to prevent rights from being worthless when they expire.

For rights issues were a temporary line is paid as a result of the subscription, the temporary line will be moved into the ordinary line via a Pari Passu event.

*Australian Listed Events
For certain event types including but not limited to Non Renounceable Rights Distributions, Subscription Offers, Entitlement Offers, Rapid Offers, Retail Offers, Australian Listed Companies have the right to reduce entitlements to zero in certain circumstances and Saxo Capital Markets will therefore only be booking entitlements to clients on the Payment Date.

Share Premiums

Cash payment is allocated on Ex-date for value Pay date.

Special Corporate Action Events

Special and infrequent Corporate Actions that do not come under the descriptions above may occur.

Saxo Capital Markets will handle such Corporate Actions in the interest of the clients to the extent that time and operational procedures will allow.

Stock Dividends

Additional Stocks are allocated on the Ex-date for value on the Pay Date.

Stock Splits / Reverse Stock Splits

Stock positions are allocated on the Ex-date.

Taxes and Fees on Corporate actions

Taxes and fees may also occur on other corporate action other than cash dividends such as fee on a stock dividend or tax on a merger.

When such taxes and fees occur, Saxo Capital Markets will debit the client’s account accordingly.

Tender Offers

Clients holding Stocks in their portfolio will have the possibility to tender.

Warrant exercise

Clients holding warrants will have the possibility to exercise their warrant prior to the deadline. Warrants not sold or exercised will lapse worthless.

Withholding Tax

Withholding Tax on Singapore Real Estate Investments Trusts (REITs)

With effect from 1 November 2016, a withholding tax on income will be applied to REIT holdings as set out below.

REITs

Singapore residentsNo withholding tax
Non-Singapore residents 17%

 

REIT CFDs

Singapore residents10%
Non-Singapore residents 17%