Drop Down MenusCSS Drop Down MenuPure CSS Dropdown Menu

Wealthgeo.com/Wealthgeo website Aim is to provide Financial Stock Market,Binary option trading,crypto currencies trade ,Forex trading and Feature and option trading and help in terms of investment ideas ,area for investments ,technical stuff related to financial markets for making wealth. After years of research i found the way to share financial market fundamental and technical info updates in this website. To know more follow and subscribe to this website.

Ex Dividend and Record Date

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.

No comments:

Post a Comment

GOOD ONE

Related Posts Plugin for WordPress, Blogger...