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Understanding Record Date and Ex-Date in Corporate Actions | CDSL Bonus Example

Are you confused about what a Record Date and Ex-Date mean when a company announces a bonus or stock split? Let's break it down using a real-world example!

CDSL (Central Depository Services Limited) recently announced a 1:1 bonus, meaning shareholders will receive an additional share for every share they hold. The Record Date for this bonus is set for August 24, 2024, which is a Saturday— a market holiday. To be eligible for this bonus, you must have CDSL shares in your Demat account by August 23, 2024.

Here’s how it works:

T+1 Settlement Cycle: In India, we follow a T+1 settlement cycle, meaning if you buy shares on Day T, they will be credited to your Demat account on Day T+1. So, if you purchase CDSL shares on August 22, they’ll be in your account by August 23, making you eligible for the bonus.

Ex-Date: August 23 is the Ex-Date for CDSL's bonus issue. If you buy CDSL shares on this day, they won’t reach your account until August 26 (Monday), missing the Record Date. This means you won’t be eligible for the bonus shares.

Price Adjustment: After the bonus issue, CDSL’s share price will adjust to reflect the increased number of shares. Don’t worry— your investment value remains the same, but the price per share will decrease proportionally.

This YouTube Short will help you understand the critical difference between Record Date and Ex-Date, and how these dates impact your eligibility for bonuses like the one announced by CDSL. Make sure to keep an eye on these dates when investing!

Disclaimer: This video is for educational purposes only. The information provided is based on publicly available data and should not be construed as financial advice. Always conduct your own research or consult with a financial advisor before making any investment decisions. The channel is not responsible for any losses incurred from investments made based on this information.

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