Record Date
The date on which a company checks its register to determine who is entitled to a corporate action.
How it is identified
Test: the shareholder's name appears in the register of members or the depository records at the end of the record date
Unit
qualitative
In depth
Entitlement depends on being a registered holder on the record date, which because of the settlement cycle means buying at least one settlement day before it. The ex-date is derived from the record date and is the first day the share trades without the entitlement, which is the date that actually matters for a buyer. Every corporate action has a record date: dividends, bonuses, splits, rights and buyback eligibility. Selling on the ex-date keeps the entitlement, because the register already recorded the holding.
Worked example
With a record date of Thursday under a T+1 settlement cycle, a purchase on Wednesday settles Thursday and qualifies. A purchase on Thursday itself settles Friday and does not.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Record Date” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.