How to Intimate for Payment of Interim Dividend

If boards of directors gives the dividend before annual general meeting and before closing of the year and before finding the real net profit, it is called interim dividend. It will be helpful for shareholders to feel satisfy and also get some basic needs from this money. 

{As per Company Law 2013 : It is the duty of board of directors to declare interim dividend as per sub section of 3 of section 123 of Indian Company Act, 2013. With in 30 days of its declaration by company, it must be paid to shareholder and same payment by cheque or warrant or electronic bank transfer.}

It is the duty of company secretary to intimate to the shareholders after declaring and paying such dividend. With a simple letter, company secretary of company can intimate about this. 

Following will be its format

Dear Shareholder,

Re: Intimation for payment of interim dividend for FY 2019-2020

The particular of the interim dividend for FY 2019-2020 paid to you on your holding of #Equity shares in the company are mentioned overleaf. The interim dividend of ( Rate of Dividend per Equity share ) was declared at the board meeting of the company held on Friday, Date mention _________

  • Dividend sent to bank as per mandate instructions :
The dividend warrant has been forwarded directly to your banker as per details mentioned overleaf. 

  • Dividend sent through National automated clearing house (NACH )
The company has intimated axis bank ltd to credit your bank account with the dividend amount due to you as per details mentioned overleaf through NACH

  • Dividend sent through Direct facility (DCF)

The company has made arrangement with axis bank ltd to credit your dividend amount as per details mentioned overleaf through direct credit to your bank account maintained with them.

Kindly verify the credit of the dividend amount in your pass book / bank statement, where it would be indicated as "NACH"/ "Direct Credit" ( as applicable ), as the source of the same.

No charge should be levied by the destination bank for receipt of this amount. In case of your bank has levied a charge, please take up the matter with your bank for reversal of the same.

If your bank is a participating bank in NACH and has migrated to core banking system (CBS), and if you have not recorded / Updated in your DEMAT Account your new account number (CBS enabled ) allocated to your against  your account, there is a possibility that, this transaction would have been rejected / returned by your broker and Demand draft would have been dispatched by the company.

In case of any change in your bank details / Mandate / name / address / nominations / registration of PoA / updation of core banking solutions enabled account number / 9 digit MICR / 11  Difit IFSC Code and email ID, Please register immediately.

  • With the company's registrars and transfer angents, (Write specific ) . if you are the holding shares in physical mode
  • With your depository participant (DP) if you are holding share in materialized form. 
In case you wish to receive an email intimation for electronic credit of dividend in your bank account, other corporate actions and shareholder communications, you are requested to register / update your email id in the Demat account with your depository participant and with registrars and transfer agents, (Write specific ) , for physical holding.

In case you hold shares in physical form and wish to convert them into dematerialised form for ease in portfolio management :

  • Please contact company or company's registrars and transfer agents. 
(Write specific ) at the address mentioned below, for assistance in this regard.

Thanking you

Your faithfully

For Company name

Sign of Company Secretary

All queries to be addressed to the company's registrars and transfer agents

Name of registrar

Name of company

Address of registrar

Like above format, you can intimate for the payment of interim divided. Now, we giving real intimation letter example which will help you to make your own intimation letter.

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Krantikari: How to Intimate for Payment of Interim Dividend
How to Intimate for Payment of Interim Dividend
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