When a company planned to give a bonus to its shareholders, there are few dates which are to be considered by the traders and shareholders.
The company can announce the bonus on any ratio example 1:5 or 1:10 etc...
If company announces the bonus share in ratio 1:5, which means 1 share is given as bonus for every 5 shares held.
Announcement Date:
When the company is announcing the Bonus, it is the announcement date.
Record Date:
This is the date when company considers the list of shareholders who are eligible for bonuses. This means on this particular date we should be holding the shares in our account, if the shares are about to reflect in the Dmat account, those are not considered.
Ex-bonus Date:
This date is one day prior to Record date. In India the share reflect in our account in T+2 days. If we buy share one day prior to ex-bonus date, those share will reflect in our account on Record date and those will be accounted for bonuses. If we buy share on Ex-bonus date, those share will reflect in our account next date to the record date and those are not accounted.
So, share should be bought 1 day before to Ex-bonus date to be eligible for Bonuses.
All days are working days, no weekends or holidays are considered for calculation.
Best Regards,
B G Nareshkumar
The company can announce the bonus on any ratio example 1:5 or 1:10 etc...
If company announces the bonus share in ratio 1:5, which means 1 share is given as bonus for every 5 shares held.
Announcement Date:
When the company is announcing the Bonus, it is the announcement date.
Record Date:
This is the date when company considers the list of shareholders who are eligible for bonuses. This means on this particular date we should be holding the shares in our account, if the shares are about to reflect in the Dmat account, those are not considered.
Ex-bonus Date:
This date is one day prior to Record date. In India the share reflect in our account in T+2 days. If we buy share one day prior to ex-bonus date, those share will reflect in our account on Record date and those will be accounted for bonuses. If we buy share on Ex-bonus date, those share will reflect in our account next date to the record date and those are not accounted.
So, share should be bought 1 day before to Ex-bonus date to be eligible for Bonuses.
All days are working days, no weekends or holidays are considered for calculation.
Best Regards,
B G Nareshkumar
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