What is the eligibility for corporate action at 5paisa?
Eligibility of Corporate Action:
Let's delve into the significance of various pivotal dates concerning corporate
actions:
Declaration Date: On this day, the Board of Directors publicly announces to
both shareholders and the broader market its intention to undertake Corporate
actions like dividends/Bonus/Rights/Splits/Merger/Demerger etc.
Ex-Date: This marks the point when a security is traded without the inclusion
of the corporate action benefits. Investors who purchase the security on or
after the ex-date are not qualified to participate in the company's corporate
action.
Record Date: On this date, the company reviews its records to ascertain which
shareholders have the right to take part in the corporate action. Investors
holding shares on the record date are eligible for the corporate action.
Date of Payment: This is the day when the company dispatches the corporate
action materials to the shareholders who held shares on the record date.
Usually occurring a week or more after the record date, this timeframe ensures
the company has ample time to accurately process payments of Dividends for all
eligible parties.
You can check the Ex-date and record date on the NSE/BSE website.