Key Points
When a company declares dividends, they are typically credited directly into the bank account linked to your demat account..
Verification of Eligible Shareholders: The company or its registrar verifies the shareholding records as of the record date to identify eligible shareholders who are entitled to receive dividends..
Crediting to Demat Accounts: The DP or RTA then processes the dividend payments and credits the respective amounts into the bank accounts linked to the investors' demat accounts..
Reflecting in Demat Account Statements: The credited dividend amount is reflected in the investor's demat account statement, providing a record of the dividend income received...
It's important to ensure that your bank account details are correctly linked to your demat account to facilitate the seamless crediting of dividends..
