Record date

The date on which a company checks its register to decide who receives a dividend, a bonus or a rights entitlement.

The ex-date is the related trading concept: from that date the share trades without the entitlement, and the price adjusts by roughly the amount being distributed.

A ₹12 dividend on a ₹1,200 share means the share should open about ₹12 lower on the ex-date, and a holder who sees that fall has not lost anything.

The two dates and the settlement cycle have to be read together to know the last qualifying trade date.