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In order for you as a buyer to receive the dividend, your settlement must occur on or before the record date. It takes three days to settle: the day the trade is initiated (T) plus two business days. The second business day is the settlement date.

What are the Important Dividend Dates? Declaration Date. The declaration date is the date on which the board of directors announces and approves the payment of a dividend.Ex-Dividend Date. The ex-dividend date is the first day that a stock trades without a dividend.Record Date.Payment Date.

Typically, the ex-dividend date is set two business days prior to the record date for dividends in India. That is because according to the protocol followed in stock exchanges, it takes T+2 days for a shareholder's name to appear in the books of a company, from which it determines the eligible list of stakeholders.

The record date is decided by the board of directors of the company. The board also decides which shareholders receive stock reports and other financial information related to the shares.

Both dates determine whether a stockholder earns the dividend but come at different points in the timeline. Different sources determine the two dates. The ex-dividend date comes from a stock exchange's rules, whereas the company itself chooses the record date.

Yes, shareholders are eligible for the benefits of corporate actions even if the shares are sold on the ex-date or the record date.

What is a record date? The record date is the date set forth by the company that determines which shareholders are eligible to receive the company's dividends. It is also known as the cut-off date. The record date ascertains which investors can be deemed as the shareholders of the company.