Info needed about dividend declaration and its aftermath

prst

prst

Well-Known Member
#1
#1
Hi friends,

I need some basic information regarding dividend declaration and its affect on the share value.

my main source for this info is the nse-india site.
I went through the link "Corporate Announcements" to get a list of companies declaring their divident in the immediate near future.

I observed the following info over there, which am not clear about.

Record Date - EX - Date 17-SEP-09
BC Start Date 22-SEP-09
BC End Date 30-SEP-09
ND start Date - ND End Date -
Purpose AGM/DIV-RE.0.50 PER SHARE

My doubts are as follows

1. Does EX date means dividend excluded date?

2. What does bc start and end dates stand for?

3. Is it true that the price of the stock will "always" rise when the news of dividend allocation is announced? and it will fall on the next day?

Thanks.

Prashanth
 
R

rvm123

Active Member
#2
#2
1. "Ex-date" means from that date onwards, the price of shares is excluding the dividend; i.e., if someone buys on that date, he will not be eligible for the dividend.
2."BC" stands for "Book Closure", which means, during the period BC start and BC end, the company will be taking stock of the persons who will be eligible for the dividend declared. In the above example, though ex date is 17.9.09, the company will wait for the period 22.9.09 to 30.9.09 to update their register of members to ensure that all transcations before the ex-date are registered and the buyers of the shares before that date will become eligible for dividend. in other words, during the period, BC start to BC end, the company will not update the transactions which are carried on from the date of ex-date. The updation will be done after the BC end date.
3. It is only a notion. Realty may differ.
 
prst

prst

Well-Known Member
#3
#3
rvm123 said:
1. "Ex-date" means from that date onwards, the price of shares is excluding the dividend; i.e., if someone buys on that date, he will not be eligible for the dividend.
2."BC" stands for "Book Closure", which means, during the period BC start and BC end, the company will be taking stock of the persons who will be eligible for the dividend declared. In the above example, though ex date is 17.9.09, the company will wait for the period 22.9.09 to 30.9.09 to update their register of members to ensure that all transcations before the ex-date are registered and the buyers of the shares before that date will become eligible for dividend. in other words, during the period, BC start to BC end, the company will not update the transactions which are carried on from the date of ex-date. The updation will be done after the BC end date.
3. It is only a notion. Realty may differ.
Click to expand...


Hi,
Thanks a lot.
This means that, if i buy it on 22nd Sep and sell on 23rd, (taking delivery), will i be getting the dividend?
 
R

rvm123

Active Member
#4
#4
as the ex-date is 17.9.10, only if you buy upto 16.9.10, you are eligible for dividend. from 17.9.10 onwards, the buyers are not eligible for the dividend
if you buy on 16.9.10 and sell on 17.9.10, you are eligible for the dividend.
 
prst

prst

Well-Known Member
#5
#5
Thanks.
that means BC start and end dates only refer to dates when dividend is actually paid.
ex date and record date are to be counted for checking who qualify for dividend.
 
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