Ex-Dividend date and Record date – For Indian Companies


Many investors in India are getting confused about the ex-dividend date and record date. In order to clarify, the following details are given:

As per NSE notices, for Patni computers, 30.8.2010 is ex-div. date and 31.8.2010 is record date for the purpose of dividend which was Rs.63 per share.

Ex-dividend date: In the above case of Patni, the ex-dividend date is 30.8.2010.

The ex-dividend date was created to allow all pending transactions to be completed before the record date. If an investor does not own the stock before the ex-dividend date by payment, he or she will be ineligible for the dividend payout.Within record date, the shares should be credited to investors account. In india, T+2 system is carried out. In Patni case, if any one purchased share on 27.08.10(friday), he will get the shares transferred in his name on 31.08.10(Tuesday).

Note: Saturday and Sunday are non-trading days and hence T=2 days system will apply only to working days.

So he will be eligible for dividend. On 30.8.32010 if any one purchases Patni Computers, it will be ex-dividend as the shares will be credited only on 1.9.2010. So 30.8.2010 is ex-dividend date.

The Ex-Dividend Date is the first day a stock trades without the dividend declared attached to it. If investor buy a stock on the Ex-Dividend Date buyer is not qualified for the dividend. Therefore, if any buyer is very interested in receiving dividends,he must own prior to the Ex-dividend date.This also means he can sell a stock on the Ex-Dividend date and still receive the dividends even though shares have not been placed in his account yet.

The record date: In the above case of Patni Computers is 31.8.2010.

The record date is the date on which investor must be a holder of the stock (i.e., a share holders or unit holders) in order to receive the dividends for the upcoming payment date.

C. R. Venkata Ramani

(AICWA)

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47 thoughts on “Ex-Dividend date and Record date – For Indian Companies

  1. Sir, I sold 80 qty on 4th July2016 of century enka, where as exdate is 1st july2016. 2nd and 3rd are holidays. Please tell me am i eligible for dividend.

  2. 15.05.2016
    Dear Mr. Venkat Ramani,
    I happened to read your art. on Ex-dividend date and Record date announced by the companies in the matter of dividend. It was fine and in short to the point of clarification one may need. Thanks all the same.

    Now coming to browse the slot where to see the dates as announced by the respective companies in the website. If I open BSE 140 Portal to know the live market rates, in that I do not find anything except the on the right bottom there are 5 squares, 1, news, 2, Results, 3 SHP 4, CA and 5 Bulk. In that some companies do provide the dates and many are not…..

    In view of the above, can you kindly guide me how to go about finding the exact date of Dividend eligibility or otherwise as also the record date….. I shall be thankful.

    Can I be in touch with you on any of the aspects as regards financials……?

    thanks n regards,
    R.Chandrasekaran

  3. Sir, I purchased Rain Industries share 2 months i.e (around mid september) prior to ex dividend and record date. I sold the shares exactly on the ex dividend date i.e on 19th november 2014 and record date being 20th november 2014. Will I be able to receive the dividend ? Because payment date is on 28th November 2014 many people received dividend money . My bank didn’t credit it to my account yet will it take t+2 working days more or am I ineligible for the dividend ?

  4. Sir, I bought J&K Bank on 23rd July, 2014 and sold on 25 July, 2014. Will I get dividend? And how do I know the dividend dispatching date? Please Reply.

  5. Dear Venkat,

    Today Stride Arcolabs has announced Rs. 500/- per share special dividend with record date as 20th December 2013 with payout takes place from on or after 27th December. But here no ex-dividend date provided. Can you please tell us when can I sell the shares earliest without loosing the divident amount.

    Appreciate your response. Thank you.

    1. you are owner of the dividend if you purchase the share before ex-dividend date.you can sell it on eyx-dividend date or later but dividend is yours. Even if you hold for one day before ex-dividend date,you can get dividend. But on ex-dividend date, the share will go down ofcourse not in pro-rata but based on market conditions

      1. Sir,
        I have 1000 shares of a company.
        Ex date is 18th June. and record date is 19th june.
        I sell 500 share on 18 i.e. the ex date after the share price has gone down.
        How many bonus shares do I get? 500 or 1000?
        Please reply.
        Thanks

  6. I purchased Pfizer and Wyeth stocks today and Record Date is December 6, 2013 for the purpose of Interim dividend payment, If I sell the stocks on December 9th 2013 will I get the dividend. I could not find the Ex.Dividend date mentioned. What are the chances of price correction after the record date. Will the price get adjusted by deducting the dividend amount, Kindly advise.

    1. for your knowledge, you find out ex-dividend date of any share you want to purchase. You can purchase it before ex-dividend date and sell it on ex-dividend date. You are fully eligible for dividend. Normally, on ex-dividend date, the share price comes down though it may not be pro-rata. Normally some profit will be there if market shines or other way down.

  7. Dear Vankat,

    What happens to the share price on ex-dividend date? Does the dividend price per share get deducted from the market price of the share?

    Say if the closing price of a stock is Rs.100 on a close prior to ex-dividend date and company determines the dividend per share to be Rs.30/-.

    Should the opening price of the stock be Rs.70/- on ex-dividend date?

    1. Not exactly. Since dividend will go to previous owner of shares, the market will discount this outgo of dividend. But it will not be exactly the same. Sometimes it will decrease slightly or sometimes more. All this depend upon demand and supply on ex-dividend date.

      venkat

      1. Dear Mr. Venkata Ramani…

        I have gone thru some of your articles and I must say that it feels very happy to see someone at a high rank like you takes time and effort to spread awareness among people.

        I had actually lost a track to your blog and I am glad I found it back again. I truly appreciate your response and your initiative of spreading knowledge thru this blog.

        I would also like to know if there is a any forum where questions can be directed to you, only if you still encourage them, because posting unrelated queries on articles would be frustrating for others.

        Regards,
        Khan

  8. i bought jk bank shares on 3rd july2012. ex dividend date is 5th july. if i sell on 5th july will i get dividend. is it compulsory to hold till record date

  9. Hello Sir,
    I have one confusion.
    Company Name : Navin Flurin
    Ex Date : 07-06-2012
    Record Date : 15-06-12

    If i am purchase share on 07-06-12 than am i eligible for dividend ?

  10. Hi Ram,

    I have little confusion, in following scenario

    A company’s Interim Dividend declared & the Dividend dates are as follows,
    Ex-Date – 03 April
    Record Date – 07 April
    Am I eligible for Interim Dividend, if I purchase shares on 02 April & sell it on 4 April, ? or I need to hold the shares in my Dmat A/c till 07 April EoD

    1. Dear sir,

      I think you are eligible for dividend. But it is a tricky and risky plan. The shares will be in the name of brokers in bulk. they may or may not pass the benefit of dividend. Why the record date is fixed on 7th april12? It is because Thursday and friday are holidays of NSE and hence shares record date is slightly away from ex-dividend date. You can check that the shares after ex div date loses the dividend rate in its final price normally.

      venkat

  11. Dear Sir,

    I had 60 shares of suzlon in sharekhan demat account. Recently, I opened another demat account. Can I transfer that shares to this new demat account? If yes, What is the Chargers?

    Thanks & Regards,

    Rahul

  12. Ram – In essence if one buys a stock and hold it through the closing of the business day before the ex-dividend date they will get the stock.

    If 2-Mar-2012 is the ex-dividend date and I buy it on 1-Mar-2012 (all business days) then I must be eligible for the dividend, right?

    1. Yes. ofcourse. You are eligible for dividend even if you sell it on 2nd March 12. Demand for dividend from company/broker if you do not receive dividend from the company after the release of dividend date.

      venkat

    1. Since shares are purchased and sold daily, the owners of the shares are changing. In order to identify the real owners and beneficiary for dividend, rights, bonus etc, the company will declare book closure date or record date for the purpose of identifying the beneficiary. You can know all these from my article.

  13. i had india bull rea estate 2000 shares in the month of november 2011. it was in the
    account of broker. when demerger decared by ibr estate with ibpower with ratio
    of 1 ibr estate holder eligible to have 2.9 ib power share. ex date was 08/12/2011
    Broker sold out ibr estate share on 08/12/2011. in that case what we has to do.
    shailesh

    1. you got the right to claim the shares of ib power. You give representation to your broker. If no response is given then represent to NSE investor grievances cell.You can go and see the procedures relating to this in NSE website. venkat

  14. sir if a company’s record date/book closure date is given as 1 aug 2011 to 8 aug 2011
    then beforewhen i should buy the stock to get the divident if i am interested to get it

    1. Please check the ex-dividend date which is important. Before ex-dividend date, you are eligible for dividend. The record dates may be subsequent to that as per company’s convenience.

      venkat

  15. For 1000 shares, you should have got Rs.63000 in your bank account as dividend. So check. Communicate with the company. If no reply received within a reasonable time, then you can represent to investors grievances cell of SEBI, mumbai. Now in the open offer, you can sell them at open offer at Rs.503/-. Even after selling, you got the right to get dividend as you were the owner at that time of record date. Take necessary details by downloading from your demat holdings. You can take a certificate from your stock broker. Then you can demand the dividend also from the company and if it fails, you can represent to SEBI which will get you dividend along with interest. Sometimes brokers used to keep the stock in their name and do not pass the dividend to customers. So check with your stock broker also. You can complain to SEBI against stock broker also if he has taken the dividend money. On any account, he can take your dividend and he has to transfer the dividend to you

    1. Hello Sir,

      I have spoken with my broker, they said that it should come this month and may be the delay is because of the igate case. I asked about the calculation she calculated and said its according to the number of years, i.e. Rs. 63 is not fixed for every holder? They have different slabs. I am not sure, need your advice.

      Regards

      Rajeev

      1. read my article. It has given the ex.div date etc. Tell your broker. It is nothing to do with igate affairs. This amount of dividend is Rs.63 per share. If you hold as on the date of dividend 1000 shares, then you are eligible to get Rs.63000/-. If your shares are free and in your name in your dp, then definitely the company must have deposited the dividend in your bank account. If it is not transferred in your name and stock broker holds the same instead of putting them in your name, then he will get the dividend as his name is appearing. Please check with him. You can check the website of nseindia.com and then click stock quote mentioning ‘patni com’ .Then patni rate quote will appear. There if you click and check up corporate action tab below the quote, you can see the details of dividend date etc. Hope this is clear to you

      2. Further, I think you should have got final dividend of Rs.3 also per share earlier apart from special dividend of Rs.63 per share. Something wrong is going on from your broker side and better to talk to top person there as it appears that lady is not knowing anything.

  16. Sir,

    I have got 1000 shares of Patni. I bought it in the year 2009. Am I eligible for the divident, if yes then how it is to be calculated and I still haven’t got it. Please tell me sir.

    1. The special dividend of Rs.63 was declared and payable on 30.8.2010. You should have got it in your bank. Please check it up. If not, take up the matter with the registrars of the company or you can write to the company directly. The address can be had from the internet or you can check up with stock broker who will help you to get the details.

      Now presently, there is one open offer is pending for Rs.503 which will be offered to you as well. You can contact your stock broker and tell him how to apply for this open offer and he will help you. This method you can follow if you are interested to sell your shares. Otherwise, you can keep silent. The present market price is around Rs.465. It is better to offer.

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