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
distribute dividends.
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 partake 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 for all eligible parties.
You can check the Ex-date and record date on
the NSE website.
Related Articles
Will eligibility for corporate action benefits be affected if stocks are pledged with 5Paisa?
If you have pledged your stocks with 5Paisa, you will still be eligible for corporate action benefits, such as dividends or bonus shares. The critical point is that the stocks must be in your Demat account by the record date. So, even if your stocks ...
Will I be eligible for corporate action if I purchase shares on debit?
Whether you are eligible for a corporate action if you purchase shares using debit (funding) depends on the specific corporate action and the terms associated with it. In many cases, eligibility for corporate actions is determined based on the ...
Are shareholders eligible for corporate action benefits if the shares are sold on the ex-date/record date?
Yes, shareholders are still eligible for corporate action benefits even if they sell their shares on the ex-date or record date. Here’s why: Eligibility Criteria: To receive benefits from corporate actions, such as dividends or bonus shares, you must ...
Why were the shares not eligible for corporate action benefits even though they were purchased before the ex-date?
To be eligible for corporate action benefits (like dividends, bonuses, or stock splits), investors must have the shares credited to their demat accounts on or before the ex-date or record date. Here are the reasons why shares purchased before the ...
What are Corporate Actions?
Companies periodically announce corporate actions like Bonus, Split, Mergers which will have an impact to the holdings. In the portfolio computation logic, system applies the corporate action effect as announced by the company. Read more about ...