Clients holding Stock positions will receive rights and can choose to sell the rights or subscribe to new Stocks. If Saxo Capital Markets has not received a response from clients by the reply deadline date stipulated by Saxo Capital Markets, Saxo will if possible, sell the rights on behalf of our clients before they expire.
If the rights are non-tradable, they will lapse and become worthless. The proceeds from the sale will be distributed to our clients, less standard commission for the account. The reason the Saxo carries out this action is to prevent rights from being worthless when they expire.
*Australian Listed Events
For certain event types including but not limited to Non Renounceable Rights Distributions, Subscription Offers, Entitlement Offers, Rapid Offers, Retail Offers, Australian Listed Companies have the right to reduce entitlements to zero in certain circumstances and Saxo Capital Markets will therefore only be booking entitlements to clients on the Payment Date.
Note that since March 2009 it is the policy of the ACSA (Australian Custodial Services Association) not to offer Share Purchase Plans Events (SPP) to underlying beneficial owner clients and thus Saxo Capital Markets cannot participate in such events.