DTC’s Corporate Actions Processing Service for Distributions provides full lifecycle processing, including announcing details of upcoming events, providing participants with information about their entitlements, accepting and acting on their instructions, and collecting, allocating and reporting payments.
The Distributions service includes processing events such as cash and stock dividends, principal and interest (P&I), capital gain distributions, return of capital, spin-offs, stock splits, and other events that arise from the servicing of the approximately 1.3 million active securities eligible at the depository.
P&I Cash Processing interacts with over 7,000 paying agents and issuers annually to facilitate the allocation of P&I entitlements to DTC participants on the scheduled payment date. For cash distributions, DTC provides additional services related to tracking for stock loan, repo, and fail transactions. DTC also provides the opportunity for its members to receive dividend reinvestment, payment in a foreign currency, and tax relief at-source for tax withheld on dividends paid on non-U.S. issues (See Global Tax Services fact sheets). Securities eligible for this service include foreign shares eligible at the depository but held in custody by DTC with local custodians and depositories.