Corporate Action Participant

Here we will discussed who are the corporate action participants or terms of parties involve to complete Corporate Action event.

Issuer: 

Corporate action always start with issuer First. Issuer here means company who wanted to announce the corporate event. Company's Board of Director decide to take decision on strategy benefit to company and shareholder

Agent: 

Second participant for corporate action is agent. Company/issuer are not expert in corporate action so they hire merchant banker to process corporate action on behalf of issuer. 

Agents are getting details from the issuers for the key dates used to announce the corporate action events, formulates the terms of the event as per guideline from company and announce the event in the market.

Sub-custodian/depository/Registrar : 

Third participant for corporate action is sub-custodian/registrar/depository. In some market, where global custodian has no existence, in this case they hire sub custodian. Sub custodian also called as local custodian who safe custody of shares on behalf of share holder. 

In some market like US UK, registrar/depository are the market participate where agent provide the corporate action details to provide the global custodian.

Global Custodian: 

Fourth participant of market is Global custodian. So global custodian who holds the shares or safe keeping of shares on behalf of shareholder globally. Irrespective of client based in anywhere globally, they can hold shares with custodian bank or safe keeping of shares. Custodian who is responsible for showing effect of transactions whether it is for Buy, sell, delivered off or receive in the shareholders account.

Investment Manager/portfolio Manager: 

Fifth participant is investment manager/portfolio Manager who manages portfolio on behalf of end client/shareholder. They buy/sell on behalf of shareholder and generate profit for the shareholder.

Client/shareholder: 

Last participant in the market is share holder who is also called as beneficial owner of asset.

Shareholder are actual owner of the shares so any corporate action announced by company/issuer directly affect the shares of shareholder.


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