Know about a no-delivery period, ex-dividend date, ex-date.

Know about a no-delivery period.
No-delivery period means during a perticular period , any investor should not buy that perticular share/security for delivery purpose.Whenever a company announces a book closure or record date, the Exchange sets up a no-delivery (ND) period for that company's share/security. During this period only trading is permitted in the security. However, these trades are settled only after the no-delivery period is over. This is done to ensure that investor's entitlement for the corporate benefit is clearly determined.

Ex-dividend date.

The date on or after which a share/security begins trading without the dividend (cash or stock) included in the contract price.

Ex-date.

The first day of the no-delivery period is the ex-date. If there is any corporate benefits such as rights, bonus, dividend announced for which book closure/record date is fixed, the buyer of the shares on or after the ex-date will not be eligible for the benefits.

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