Am I eligible for corporate actions if I sell my holdings on the ex-date?

Am I eligible for corporate actions if I sell my holdings on the ex-date?

Yes, if you hold shares until the ex-date, you are eligible to receive the applicable corporate actions—such as dividends, bonuses, splits, or rights—even if you sell the shares on that day.

How does this work?

Corporate action eligibility is determined based on the record date, and the ex-date is typically one trading day before it. To be eligible, you must own the shares at the end of trading on the day before the ex-date.

However, since Indian equity markets follow a T+1 settlement cycle, if you sell your shares on the ex-date, the shares still remain in your Demat account until the next trading day. Therefore, you are still the legal owner on the record date and entitled to the benefit.

Example

Let’s say REC Ltd. declares a dividend of ₹5 per share with a record date of 9th November 2022.

  • Mr. X sells his REC Ltd. shares on 9th November (ex-date).
  • Since shares settle T+1, he is still the shareholder of record as of 9th November.
  • Mr. X is eligible for the ₹5 dividend.

What If...

ScenarioExplanation
I sell shares on the ex-dateYou are still eligible for corporate action benefits as your shares are in your Demat on the record date.
I sell shares before the ex-dateYou will not be eligible, as the new buyer will be the holder on the record date.
I buy shares on the ex-dateYou won’t be eligible for the benefit, as the trade will settle after the record date.
Always refer to the company’s official announcement for accurate ex-date and record date information, and ensure you hold the stock through the ex-date to remain eligible.

Last updated: 28 Jun 2025

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