hi friends,
as far as i could find out Company declares Record date on which it Checks its books & sends dividends to all those having shares on record date are paid dividends.
while Ex-div date is declared by Exchange on the basis of Settlement cycle (T+2or T+3), 2 or 3 trading days before Record date, meaning those having Shares in their name Before Ex. date will have their names in company books on record date (2or 3 ) days back as per the prevalent rule in the exchange (NSE/BSE being T+2, so 2 days after).
so anybody buying shares on Ex-div date or later wont recieve dividend even though he had bought them before record date. meaing you have to buy shares before Ex. div date if u want to recieve dividend. & even if you sell it on or after Ex. div date (even before Record date) you are entitled to recieve dividend as the changes will take 2 (or 3) days to get in record books (depending on settlement cycle).
but i faced a problem, Mirc electricals ltd declared RECORD date 26/3/07 & NSE declared EX-DIV date as 23/3/07. i bought shares on 21/3 & sold on 23/3(i.e. Ex div date) under BTST from ICICI DIRECT.
but now on recieving my Demat statement, i see that there is no mention of this particular dividend.
is it because i sold them under BTST before taking delivery at all?
or my funda of Ex. Div date & record date is wrong.
Vijay Malik
as far as i could find out Company declares Record date on which it Checks its books & sends dividends to all those having shares on record date are paid dividends.
while Ex-div date is declared by Exchange on the basis of Settlement cycle (T+2or T+3), 2 or 3 trading days before Record date, meaning those having Shares in their name Before Ex. date will have their names in company books on record date (2or 3 ) days back as per the prevalent rule in the exchange (NSE/BSE being T+2, so 2 days after).
so anybody buying shares on Ex-div date or later wont recieve dividend even though he had bought them before record date. meaing you have to buy shares before Ex. div date if u want to recieve dividend. & even if you sell it on or after Ex. div date (even before Record date) you are entitled to recieve dividend as the changes will take 2 (or 3) days to get in record books (depending on settlement cycle).
but i faced a problem, Mirc electricals ltd declared RECORD date 26/3/07 & NSE declared EX-DIV date as 23/3/07. i bought shares on 21/3 & sold on 23/3(i.e. Ex div date) under BTST from ICICI DIRECT.
but now on recieving my Demat statement, i see that there is no mention of this particular dividend.
is it because i sold them under BTST before taking delivery at all?
or my funda of Ex. Div date & record date is wrong.
Vijay Malik