Definition
Record Date
The record date is the date on which a company checks its books to decide who is eligible for a dividend, bonus, or other corporate action.
Anyone whose name appears as a shareholder in the company's register on the record date receives the benefit. With T+1 settlement in India, you must buy at least one trading day before the record date so the shares are in your demat account in time.
The ex-date is typically the same as the record date now. Companies announce the record date in advance via the exchanges so investors know the deadline to qualify for the entitlement.
Related terms
- Ex-DateThe ex-date is the cut-off day from which a stock trades without the right to an upcoming corporate action like a dividend, bonus, or split.
- Cum-DateCum-date refers to the period when a stock still trades 'with' the right to an upcoming dividend or corporate benefit.
- DividendA dividend is a portion of a company's profit distributed to shareholders, usually in cash and on a per-share basis.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.