TSX Adopts DRIP Rules
|Lawyer||Brad Ross, Chris Sunstrum|
|Area||Corporate Finance and Securities|
The Toronto Stock Exchange (TSX) has adopted new rules regarding dividend/distribution reinvestment plans (DRIPs) which are effective for new DRIPs and DRIP amendments adopted on or after September 1, 2016. Existing DRIPs are not subject to the new rules until they are amended and require TSX approval. The new rules also apply only to DRIPs that provide for the issuance of additional listed securities from treasury, and do not apply to DRIPs that provide for payment of dividends or distributions solely with securities purchased on the secondary market.