Securities administration - Mexico


Income collection

Market Record dateEx-dateBasis for entitlement
Dividend paymentPayment date -1Record date -2Actual settled and registered position on Record date
Coupon paymentPayment date -1Record date -2Actual settled and registered position on Record date

Dividends can be paid annually, quarterly, or on a semi-annual basis. However, most companies pay dividends annually, during the second quarter for most of them.

Indeval acts as paying agent for nearly all dividends paid by companies whose securities are held at Indeval. Indeval processes payment through an agent bank and dividends are usually paid on pay date (pay date +1 in exceptional circumstances).

Indeval is responsible for coupon clipping and payments are made same day. The record date of government bonds always falls on the Wednesday before payment, with payment processed on the following Thursday. In case a holiday falls on the Thursday, payment will be processed one day before (on Wednesday), and interest is accrued to the following period.

Payments on government instruments are credited directly to participants' accounts at Indeval, while payments on non government instruments are processed by Indeval through an agent bank.

Corporate actions

Market Record dateEx-dateBasis for entitlement
Any corporate actionPayment date -1Record date -2Actual settled and registered position on Record date

The main types of corporate actions are dividend payments (cash or stock), stock splits, right issues, tender offers, and stock certificate exchanges.

For non-voluntary events, record date is usually one day before pay date and ex-date two days prior to record date. Record dates and ex-dates for subscription offers are provided by Indeval for each event.

By law, all corporate action announcements must be published in at least local newspaper in the company's state of domicile. The BMV must be notified of all corporate action events for those companies listed on the exchange in order to establish an official ex-date in the market. The daily Boletín Bursatil issued by the BMV is the only official source of corporate action information in the Mexican market. It is rare that corporate action notifications are changed after publication. There are no penalties for late or incorrect corporate action notifications.

Shareholders meetings

Annual General Meetings (AGMs) are held during the first four months of the year, usually in April. Companies listed on the Stock Exchange must provide the MSE with corporate action details. Meeting announcements are published in the official Gazette, the Boletín Bursatil, and usually in one major newspaper. The AGM is usually held 15 business days after the announcement.

The law does not require that meeting results are published, however market practice is to publish results three to five business days after the meeting is held.

Physical attendance is required.

The share series determine the shareholders right to vote in the meeting. Shares are not frozen from trading around Annual General Meetings and Extraordinary General Meetings.