What It Means
The record date is the cutoff a company sets to decide which shareholders are eligible for a corporate action, such as a bonus issue, dividend, rights issue, or stock split. Only shareholders holding the stock in their demat account as of that date get the benefit.
How It Works
Under India's earlier T+2 settlement cycle, the ex-date used to fall one trading day before the record date, giving buyers a small extra window. Since NSE and BSE moved to T+1 settlement, the ex-date and record date usually fall on the same trading day. That means shares bought on the ex-date itself won't settle into your demat account in time to count for that record date.
Warning
Buying a stock on its record date doesn't make you eligible. Your purchase needs to have already settled into your demat account by that date, which under T+1 settlement means buying at least one trading day earlier.
Related Terms
- Ex-Date: the trading day the price actually adjusts, usually the same day as the record date
- Allotment Date: when the new shares actually get credited
- What Is a Bonus Issue?: how record date fits into the full bonus issue timeline