SEBI amends disclosure norms about intimation of record date to stock exchanges

Markets regulator Sebi has amended disclosure norms pertaining to intimation of record date to stock exchanges. Under the norms, listed companies will intimate the record date for corporate events, including dividend declaration, bonus share and rights issue, to stock exchanges.

A company is required to inform all stock exchanges where it is listed or where stock derivatives are available on its stock or where its stock form part of an index on which derivatives are available.

The record date is for the purpose of declaration of dividend; issue of right or bonus shares; issue of shares for conversion of debentures or any other convertible security; shares arising out of rights attached to debentures or any other convertible security and corporate actions like mergers, de-mergers, splits and bonus shares.

To give effect to this, Sebi has amended LODR (Listing and Disclosure Requirements) Regulations, the regulator said in a notification on Wednesday.

Record date, in market parlance refers to a particular date fixed by issuing company when an investor must own shares to be eligible to receive corporate dividends or bonus shares among others.