Corporate actions such as dividends, bonuses, rights issues, and stock splits are events initiated by listed companies that directly affect your holdings. At FYERS, these are processed automatically based on your shareholding status on the record date, ensuring you receive eligible benefits without any manual intervention.
Understanding how ex-dates, record dates, and share adjustments work helps you know when you qualify for a corporate action and how it reflects in your FYERS account.
1. Corporate Action Eligibility: Selling on the Ex-Date
Yes, if you hold shares until the ex-date, you remain eligible for corporate action benefits even if you sell those shares on the same day.
How This Works
- Corporate action eligibility is determined by the record date, while the ex-date is typically one trading day prior.
- Under the T+1 settlement cycle, when you sell shares on the ex-date, they continue to remain in your Demat account until the next trading day.
- Because you’re still the shareholder on the record date, you’re eligible for the associated benefits such as dividends, bonuses, rights, or stock splits.
Corporate Action Timelines (Dividends, Bonuses, and Splits)
Corporate actions follow a defined sequence from announcement to credit in your Demat account. Understanding this timeline helps you plan your trades and know when to expect the benefits.
| Stage | Description |
|---|
| Announcement Date | The company declares a dividend, bonus, or split through an exchange filing and public notice. |
| Record Date | Determines which shareholders are eligible for the declared benefit. |
| Ex-Date | One trading day before the record date. You must hold shares at market close on the day before the ex-date to be eligible. |
| Settlement and Credit | Benefits such as dividends are credited directly to your registered bank account, while bonuses or splits reflect in your Demat within 1–2 business days after confirmation from the exchange. |
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 shares on 9th November (ex-date).
- Since trades settle on T+1, he still appears as the shareholder on the record date.
- As a result, Mr. X remains eligible for the ₹5 dividend.
2. Stock Splits and How They Affect You in FYERS
A stock split is a corporate action in which a company divides each existing share into multiple new shares. While the total investment value stays the same, the number of shares increases and the price per share decreases proportionally.
For example, in a 1:5 stock split, one share becomes five, and each new share is priced at one-fifth of the original.
How This Reflects in FYERS
- Your holdings automatically update to reflect the revised quantity and adjusted price after the split.
- The overall portfolio value remains unchanged immediately after the corporate action.
- Updates typically reflect in your FYERS account within 1–2 business days after the record date once the exchanges confirm the change.
What If...
| Scenario | Explanation |
|---|
| I sell shares on the ex-date | You will still receive the corporate action benefit, since your shares remain in your Demat on the record date. |
| I sell shares before the ex-date | You won’t be eligible as the buyer will receive the benefit. |
| I buy shares on the ex-date | You won’t receive the benefit since the shares settle after the record date. |
| I don’t see updated quantities after a stock split | Wait 1–2 business days as FYERS updates your holdings after exchange confirmation. |
| The stock price looks lower after a split | That’s expected. The price adjusts to the split ratio while your overall investment value stays the same. |
| My average buy price or P&L looks incorrect | These figures automatically adjust post-split. Any temporary mismatch will self-correct shortly. |
| I’m unsure whether a corporate action occurred | You can check company announcements on NSE or BSE or review FYERS notifications under the Corporate Actions section. |
Tip: Always verify the ex-date and record date announced by the company before trading around corporate actions. At FYERS, we automatically process eligible benefits once confirmed by the exchanges.
Important: If a corporate action update or adjustment doesn’t reflect in your holdings even after 2 business days, please contact
our support with the scrip name and event details so our team can review it.
Last updated: 04 Nov 2025
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