When stock demerge, give dividends, or have a bonus or split, there is always two dates give. One is a “Record” date, and the other is what is called an “Ex”- Date. It’s not apparent to investors what these dates mean. On our Adani Enterprises Demerger post , we got a few replies, asking that since the Record Date was Jun 4, 2015, will they get the “demerged” shares if they bought on Jun 3? (Adani Enterprises went through a demerger after which shareholders got shares of three other companies. The Adani Enterprises share fell 80% on Jun 3, which was the “ex” date, but the record date was June 4) The concept: the Record Date is the date when the list of shareholders is tabulated, and whoever is a current shareholder, will get the corporate action applied (dividend, bonus, split, etc). But in India, stocks take two days to be transferred .… (Read On…)
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