What is Record Date and Ex Date ?

Record Date:

The record date is the cut-off date used to determine which shareholders of a stock are entitled to a dividend. The record date is set by the board of directors of a corporation. Based on the record date, the board of directors can also determine who should receive stock reports and other financial information relating to the investment.

Ex Date:

The ex-date of a stock is dictated by stock exchange rules and is usually set to be two business day before the record date. In order for an investor to receive a corporate action benefit, they would need to have their stock purchase completed by the ex-date. If the stock sale has not been completed by the ex-date, then the seller on record is the one who receives the dividend for that stock.

*Declaration Date

This is the date on which the board of directors announces to shareholders and the market as a whole that the company will pay a dividend.
*Date of payment

This is the date on which the company mails out the Corporate Action to the holder of shares on the record date. This date is generally a week or more after record date so that the company has sufficient time to ensure that it accurately pays all those who are entitled.

For example, Company ABC declares a dividend for holders of record on April 30. This means that the Record Date is set for April 30. The ex-dividend date would then typically fall two days prior, or April 28. If an investor or trader is not holding shares of ABC by the end of the trading day on Apr 28, they would not be eligible to receive the dividend.

Below is the table which will tell on who is eligible for the corporate action:

Hence, if you are holding shares in trading (Pool)/Demat account on or before record date irrespective of debit or credit balances in your Trading or Demat account; you are eligible for corporate benefits.

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