Corporate Action Services

Types of Mandatory Corporate Actions

• Payment of Bonds Coupon

  Account Holder is entitled to Bonds coupon of its ownership until record date. Upon payment [due] date, C-BEST will automatically distribute the dividend to the accounts of beneficiaries based on record date’s list of the aforementioned Bond dividend’s disbursement.

• Main Bonds Payment

  Payment of the Bonds’ nominal value will be made upon its maturity. KSEI will deliver a list of bondholders – which are the list of parties who hold Bonds’ ownership to the maturity date – to Issuers/Registrars. Issuers will then deliver the related payment funds to KSEI.

  DThe distribution of Bonds’ payment will be made to the entitled Account Holders following KSEI’s receipt of funds from the Issuers/Registrars.

• Cash Dividend

  Cash Dividend will be distributed by KSEI to the Account Holders or Sub Account Holders in possession of shares on recording date. The system will calculate the sum of tax and net cash dividend based on the tax level applied upon each Account Holder.

  Issuer will deliver total net cash dividend following receipt of payment confirmation from KSEI. Upon distribution date, the KSEI System will distribute cash dividend into the entitled Account Holders’ accounts.

• Share Dividend

  Share Dividend will be distributed to Account Holders or Sub Account Holders in possession of shares on recording date. The system will calculate the amount of share dividend, including tax to be borne by each Account Holder.
• Distribution of Rights

  Rights will be given to Account Holders in possession of shares on recording date. The system will calculate the amount of Rights to be received by each Account Holder based on a ratio informed by the Issuer to KSEI, after which KSEI will conduct its distribution into the accounts of beneficiaries.
• Bonus Share

  The handling of bonus shares is similar to that of Share Dividend disregarding tax.
• Warrant Distribution

  Warrant Distribution is not similar to the conferring of warrants to the shareholders who exercising warrants or to those acquiring shares as proceeds of IPO. This distribution of warrants is a meant for Account Holders in possession of shares upon recording date. The system will calculate the amount of warrants to be received by each Account Holder based on a ratio informed by the Issuer to KSEI.

  Issuer will deliver total number of warrants to be distributed to KSEI, and upon distribution date, KSEI will distribute the warrants into the accounts of beneficiaries. These warrants will further be traded or exercised by Account Holders.

• Mandatory Conversion

  The conduct of this CA activity is for the purpose of changing the amount of Securities owned by an Account Holder as the result of activities conducted by an Issuer. This activity consists of:

  1. Merger and Acquisition

     Merger is an activity undertaken by Issuer to consolidate its shares. All Issuers participating in merger will become a new Issuer, or will apply the name of one among the concerning Issuers.

     An act of merger/acquisition will change the composition of Account Holders’ share ownership. The system will automatically change the composition of Securities amounts based on a ratio provided by the Issuer/Registrar, to be made effective on a date predetermined by the Issuer/Registrar.

  2. Stock Split/Reverse Split

     Stock Split and Reverse Split will change the composition of Account Holders’ share ownership. The system will automatically change the composition based on data provided by related Issuer, to be made effective on a date predetermined by the Issuer/Registrar.