Book Closure n Record Date

[richa sharma]

Please clear me the difference between Record Date and Book Closure Date.

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Regards,
CS Richa Sharma

[chakri hegde]

Dear Richa,

In simple terms, you can differentiate between Record Date and Book Closure Date as under:

Book Closure Dates:

The companies fix a date and announce that the investors who are in their records on that date would be eligible for the benefits attached to the shares. They close the share transfer books for a particular period of time for this purpose.This period is called Book Closure period. During this time, company will prepare the list of eligible shareholders and send the information to the Depositories for further action.

Record Date: 

A day before Book Closure period is Record Date. Only the investors who are in the share transfer books of a company on the end of the day on Record Date is eligible for the benefits like dividend, bonus shares etc. 

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With Best Wishes
Chakri G Hegde
Nissin Foods India Ltd.
Bangalore

www.topramen.in

[Vivek Aggarwal]

Dear Richa

Book Closure Date - The period between 2 dates when the Transfer of Share process is stopped and a list of shareholder is prepared for the purpose of declaring dividend.

Record date - The date on which list of Shareholder for the purpose of declaring dividend is finalised after completing all transfer which were in process before book closure date.

Regards
CS Vivek Aggarwal

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From: richa sharma <richash...@gmail.com>
To: csmy...@googlegroups.com
Sent: Thu, 2 September, 2010 6:33:27 PM
Subject: [CSMysore] Book Closure n Record Date

[Astarag]

These are two methods for determining the list of sh holders or members

of the company for any specific purpose like payment of dividend , bonus, right issue etc

 

generally book closure continues for a period of time consisting 1-2-3 days(sec 154 refer)

but record date is a particular date at the end of which list of share holders is made out

company can opt either of the methods

as per listing agreement company is required to close the books at least once a year

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with regards,

Cs. P.A. Patnaik
Mob 99480 57660