(CFD) DBS Scrip Dividend Blog, MSF, POEMS, Uncategorized March 29, 2021
Please be informed that DBS is having scrip dividend with ex-date on 07 Apr 2021 (Wed).
Kindly note that we would be catering for both long and short positions. Clients with long positions will receive a cash adjustment.
However, clients with short positions will have to take note of the following breakdown of events:
1) The dividend amount will be debited from clients’ CFD account 1 day before ex-date after market closes.
2) Between ex-date and last opt-in date, the lenders of the scrips, which are used as a hedge for clients’ CFD short positions, will have the right to opt for scrip or cash.
If the lender opt for scrip, it will trigger a need to purchase the shares and be delivered back to the lender. The purchase will be done after the last opt-in date. Please note that the purchase price is discretionary and may not be the same as the opening price.
3) Due to the value difference between the dividend paid and the cost of the shares purchased, clients may need to perform a top up if there is a deficit. In the case of an excess, clients will receive the difference.
Clients are advised to exercise caution in holding short positions past the ex-date as the option may result in additional losses. Clients, holding short positions, who do not want to be subjected to the above will need to liquidate your positions before ex-date.
Updated 29th March 2020, 04:30pm