Understanding Dividend Eligibility and Distribution
To receive dividends from your stock investments, it's essential to understand the key dates and processes involved:
1. Eligibility Criteria:
Purchase Timing: To be eligible for dividends, you must purchase the stocks before the Ex-Date. Even if you sell the stocks on the Ex-Date, you remain eligible for the declared dividend.
Ex-Date and Record Date: These dates are crucial in determining dividend eligibility. The Ex-Date is the cutoff date to qualify for dividends, while the Record Date is when the company identifies eligible shareholders.
2. Dividend Distribution Process:
Payment Method: Eligible shareholders will have dividends credited directly to their primary bank account linked with their Upstox Demat account on the dividend payment date.
Payment Timeline: The dividend payment date typically occurs 30–45 days after the Record Date.
3. Steps to Verify Dividend Details:
Check Key Dates: To confirm Ex-Date and Record Date information, visit the official websites of stock exchanges:
NSE: Navigate to the 'Corporate Disclosures' section.
BSE: Access the 'Corp Actions' tab.
Monitor Bank Account: Ensure your bank account linked to your Upstox Demat account is active and regularly monitor it around the expected dividend payment date.
4. Addressing Non-Receipt of Dividends:
Contact Registrar: If you do not receive the dividend after the payment date, reach out to the company's registrar for assistance.