Meaning of Record Date, Ex-Date and Book Closure Date


Have you ever visited the website of National Stock Exchange? If not please visit www.nseindia.com In the website of NSE there is a column : Corporates - If you click on Corporates Action Details, you get 3 dates viz.Ex-Date, Record Date and Bc Start Date. All these dates primarily relate to the corporate benefits like bonus shares, dividends, and announcements like face value of share splitting etc.

Have you ever visited the website of National Stock Exchange? If not please visit www.nseindia.com ?

In the website of NSE there is a column : Corporates - If you click on Corporates Action Details, you get 3 dates viz.Ex-Date, Record Date and Bc Start Date. All these dates primarily relate to the corporate benefits like bonus shares, dividends, and announcements like face value spliting etc. Face value split of a share is nothing but splitting the face value of a share say from Rs 10 to Rs 5 or may be from Rs. 10 to Re 1/- etc. Coming back to the dates in the Corporate Action Details, these dates enable the company to ascertain and determine the eligible investors for corporate benefits.

Record Date


Only those investors whose names appear in the Books of the company, a day before the Book closure period is known asRecord Date. and only such persons are eligible for the corporate benefits for which purpose the Record date has been fixed.

Ex-Date


Ex means without. If for example one scrip has become ex-date after bonus shares, then the buyers of that particular stock on or after the ex date are not entitled to bonus shares. In other words persons holding the shares or securities before this date are eligible for the bonus entitlement.

Book Closure Date


In the Corporates Action Details you have what is BC Start date, meaning thereby that Book Closure Start Date. The company after due intimation to the exchange, where the scrip has been listed, fix a date and announce that the investors whose names appear in the books of the company are entitled to the benefits like bonus, rights, split in face value, as the case may be. And during those days the share transfer books remains closed. This period, usually for about a week or so, is known as Book closure period. Since the books are closed company identifies the members and pass on the benefits to depositories which in turn credit the demat account of the investors.

Reference: www.nseindia.com


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