What are the ex-date and record date, how do they affect eligibility?

What are the ex-date and record date, how do they affect eligibility?

The record date is the date on which a company determines the list of shareholders who are eligible to receive a corporate action benefit such as dividends, bonus shares, stock splits, or rights entitlements. 

The ex-date is the date from which the stock starts trading without the corporate action benefit. Investors who buy the stock on or after the ex-date are not eligible for that corporate action. 

Under the current T+1 settlement cycle, the ex-date and record date generally fall on the same day. 

To be eligible for a corporate action: 

  • Shares must be purchased before the ex-date 

  • Shares must be credited to the demat account by the record date  

Example: Ex-date and record date eligibility 

A company announces a dividend with: 

  1. Ex-date: 10 July  

  1. Record date: 10 July 

  • If shares are bought on or before 9 July, the investor is eligible for the dividend.  

  • If shares are bought on 10 July (ex-date) or later, the investor is not eligible. 

  • If shares are sold on the ex-date, the investor remains eligible, since the shares were held before the cut-off. 

Understand Timelines for Every Corporate Action

Understand how ex-date and record date determine your entitlement to dividends, bonus shares, and rights issues.

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