Record Date

The record date is the specific date on which a company determines which shareholders are entitled to receive a declared dividend, bonus shares, rights issue entitlement, or other corporate benefit — based on the list of investors whose names appear in the company's shareholder register or Demat account records at the close of business on that date. In India's current T+1 settlement framework, an investor must purchase shares at least one trading day before the record date to ensure the shares are credited to their Demat account by the record date and qualify for the corporate action. The ex-date — the date on or after which new buyers are no longer entitled to the upcoming benefit — is the trading day immediately before the record date under T+1 settlement. On the ex-dividend date, a stock's price typically adjusts downward by approximately the dividend amount, reflecting the transfer of value from the company to qualifying shareholders. Investors should track record dates for stocks in their portfolio through NSE and BSE corporate action announcements to ensure they do not inadvertently miss entitlements.