Corporate action events
DVSC: Scrip Dividend/Payment
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DVSC is a dividend or interest payment made in the form of scrip, a certificate or entitlement that stands in for the payment, rather than in cash or in ordinary shares.
- Code
- DVSC
- Usually announced as
- MAND
What DVSC means
Scrip is a document or book-entry entitlement that represents a payment the issuer owes but does not settle in cash at once. It may later be exchanged for cash or for shares, or may itself be tradable. Issuers have used scrip when they want to keep cash in the business, and some markets use it for interest on certain bonds.
The event is mandatory: holders entitled on the record date receive the scrip in proportion to their holding. Its value, and how and when it turns into cash or shares, depends on the issuer’s terms, so the follow-up event matters as much as the distribution.
When you see it
- An MT564 with
:22F::CAEV//DVSCand:22F::CAMV//MAND, with the rate of scrip per share or per bond, the ex date, record date and payment date. Euronext lists it with the mandatory securities distributions. - Do not confuse the ISO code with the everyday term "scrip dividend". In the UK, Ireland and Australia, a scrip dividend usually means holders may take new shares instead of cash, which is announced as DVOP. A dividend paid in shares with no cash alternative is DVSE. DVSC is also one of the intermediate securities distribution types (
:22F::RHDI//DVSC).
What to do next
- No instruction for the distribution. Set up the scrip as a separate security or entitlement if it is delivered with its own identifier.
- Reconcile the quantity received in the MT566 and track the later conversion or payment event. Check the tax treatment of the scrip with the client’s tax rules.