Dividend

Dear Sir,

The relevant date is the "Record Date" on which investor should be having shares(in his demat a/c) in order to get dividend.

Date of book closure is not relevant.

For info about "record date" , you can log on to the website of  NSE / BSE , etc

Nowadays, in case of dematted shares, dividends are generally credited through ECS facility under an intimation to investor. 

Dear Mr. Mehta,

Yes, you shall be entitled for dividend as book closure (Also known as no delivery period) is after the date of delivery of shares in your Demat Account.

FYI

Co. which are listed in stock exchange fix the record date & book closure for payment of dividend, issue of right n bonus shares. Book closure is necessitated because in the share market the shares change hands frequently. In order to enable the holder /possessor of the share to receive dividend, right & bonus shares, the company needs to identify the holder as of record date. As the shares change hands frequently, it will not be possible on the part of the company to identify the real holder of the share on the date of dividend distribution.

So, the company declares book closure date, which normally five working days. Shares can be traded during the book closure period but all trades need to be offseted by buying/selling opposite position as it is NDP. That is why no investor buys the shares during book closure period. Those who purchased the shares before the book closure date get the same transferred to their name. This enables the company to identify the share holders for receipt of dividend etc. 

Regards

Juzer

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Director and Chief Financial Planner,

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