Market regulator SEBI has amended the disclosure rules for notifying stock exchanges of the record date. As per the rules. Listed companies announce the record date for stock exchanges including corporate events, dividend declaration, bonus share, and rights issue.
A company needs to know where all the stock exchanges are listed or where stock derivatives are available in its stock or where its stock is part of the index.
The record date for declaring dividend; Issuance of right or bonus shares; Issuance of shares for exchange of debentures or other convertible securities; Shares arising from corporate actions such as rights or other convertible securities linked to debentures or mergers, de-mergers, splits and bonus shares.
To implement this, SEBI has amended the LODR (Listing and Disclosure Requirements) regulations. The regulator said in a notification on Wednesday.
The record date, in market parlance, refers to a specific date determined by the issuance of a company. Then the investor holds the shares in order to be eligible to receive corporate dividends or bonus shares.