Dividend Eligibility for Buy / Sell on Ex-Dividend date

Stocks
1

I brought 500 shares of Ambuja on 10th June and sold the same on 5th Nov. (Ex-Div on 5th Nov)

The RTA rep informed that I am not eligible for the dividend. He added that neither I nor the buyer is eligible to receive the dividend (which I think is BS)

I believe that to be eligible for dividend, one needs to buy atleast one day prior to ex-div date. I owned Ambuja before market-open on Nov 5th and so I think I am eligible for the dividend. As I sold my shares on 5th Nov (ex-div date), the buyer of those shares is not eligible for div as he will not be on record until 7th Nov (T+2)

Pls clarify if my understanding is correct and I should take it forward.

2

As you sold on ex-dividend date, you will be eligible for Dividends, though this won’t be credited to your bank account but brokers pool account, after reconciliation these will be credited to your trading account.

1 Like
3

Thanks Shubh59 for quick reply.

Any idea as to when can I reasonably expect the same?

My friends received dividends in their bank account on 21st Nov

4

Hi
Is there TDS deduction on the dividend by the company or by the broker?

5

I will confirm and get back to you :slightly_smiling_face:

This will be deducted by RTA, if the TDS is deducted credit for the same will be updated against your PAN, can read this for more.

6

Thanks I will wait for your reply.

Not looking for an exact date.

Just a reasonable date is fine.

7

For dividends received in pool account we do reconciliation on every Thursday and credit the dividends on same day or by Friday.

8

Thanks Shubh. I see the dividend credited in my ledger

Just one final thing.

Normally the dividend is routed thru RTA… what about this special case??

9

When you sell on ex-date, shares are given to Clearing Corporation on same day under Early Pay-in mechanism, so the dividends you are eligible for get credited to our pool account, which we credit to your trading account.