Investment banking Mock Interview practice for Corporate action process with GMT experts /part one

Summary

In this interview transcript, Ruxar discusses their experience in finance and capital markets, focusing on performance and compliance, as well as corporate action roles. They delve into cash and stock reconciliation, the importance of resolving discrepancies, and their involvement in dividend processing. The conversation also touches on the challenges faced in explaining complex financial processes and the need for clear communication and continuous learning to improve professional skills.

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Q & A

What is the role of the interviewee in the company?

The interviewee is a Process Associate Analyst at E-Class Services Private Limited, handling cash and stock reconciliation and being a part of the production payment processing team.

What is the difference between cash and stock reconciliation according to the interviewee's experience?

Cash and stock reconciliation involves identifying and resolving discrepancies found after payments are made, ensuring that all transactions are correctly accounted for.

What does the interviewee mean by 'stops' in the context of their work?

The term 'stops' likely refers to halts or blocks in the process that need to be checked and resolved, similar to discrepancies in cash and stock reconciliation.

Can you explain the interviewee's understanding of 'dollar value added'?

The interviewee seems to have a basic understanding of 'dollar value added' as the difference between the beginning market price and the end market price of a security, indicating profit or loss.

What was the interviewee's role in the Performance and Compliance team?

The interviewee worked under Investor Manager Services, providing services to custodian banks, but was unable to clearly explain the specifics of their role in performance and compliance.

What is the difference between cash dividend and stock dividend as described by the interviewee?

A cash dividend is the profit given to shareholders in the form of cash, while a stock dividend involves giving additional shares instead of cash, aiming to increase the capital.

What is the role of a custodian in the financial services mentioned by the interviewee?

The custodian helps keep documents and provides services to the company, ensuring the safekeeping of assets and facilitating transactions.

What is the significance of the 'X date' and 'record date' in corporate actions?

The 'X date' is the date before which a buyer must purchase shares to be eligible for dividends. The 'record date' is the date on or before which the transaction must be settled to qualify for the dividend benefit.

What are the possible reasons for receiving a lesser dividend payment than expected, as discussed by the interviewee?

Possible reasons include system errors, suspense accounts, transaction fees applied by banks, currency conversion issues, or changes in dividend rates or tax rates.

What is the standard operating procedure when there is a mismatch in expected and received dividend payments?

The interviewee did not provide a clear standard operating procedure but mentioned reaching out to the agent or registrar and checking the system for discrepancies.