Does the T+1 Settlement System Affect Dividend Eligibility for NRIs?

Yes, as per the T+1 settlement system in indian stock markets, the NRIs must purchase shares at least one day before the ex-dividend date to be on the company's book as a shareholder on the record date and to receive the dividend.

Investment & Financial Planning

Ex Dividend Date vs Record Date: The Key Differences & Meaning

By Ritesh Jain |Last Updated: February 6, 2026

Ex Dividend Date vs Record Date: The Key Differences & Meaning

To generate passive income in India, NRIs prefer to invest in dividend-paying stocks. Although investing in stocks alone doesn't guarantee good returns, you also need to understand the dates associated with dividends, especially the ex-dividend date and the record date.

Understanding the ex-dividend date and record date is crucial to maximise your investment return. In this blog post, we will discuss them, including the key differences between ex-dividend and record dates, their meaning, and how these dates affect your dividends.

Ritesh Jain(Tax Expert)

Mr. Ritesh has 20 years of experience in taxation, accounting, business planning, organizational structuring, international trade financing, acquisitions, legal and secretarial services, MIS development, and a host of other areas. Mr Jain is a powerhouse of all things taxation.

Frequently Asked Questions

As an investor, to be eligible for a dividend, NRIs must purchase the share before the ex-dividend date and not on the record date. Shares bought on the day after the exercise date will not qualify for the declared dividend due to the T+1 settlement system.

No. If you buy shares on the extended date, you will not receive the dividend; the seller remains entitled to receive it.

For NRIs, the ex-dividend date is more important because it determines whether or not you will receive the dividend. The record date is generally for the company records.

Dividend income is usually credited to the NRI's NRO bank account, which is linked to their Demat account. Dividends cannot be credited directly to NRIs' foreign bank accounts.

Yes, dividend income in India is taxable for NRIs and is subject to 20% TDS, unless reduced under DTAA benefits.

Ex Dividend Date vs Record Date: The Key Differences & Meaning

Frequently Asked Questions

Is Buying Shares on the Record Date Enough to Receive a Dividend for NRIs?

Can an NRI Buy Shares on the Ex-Dividend Date and Still Get the Dividend?

Which Date Is More Important for an NRI Investor – Ex-Dividend Date or Record Date?

Where Is the Dividend Credited for NRI Investors?

Is Dividend Income Taxable for NRIs in India?

Ex Dividend Date vs Record Date: The Key Differences & Meaning

Frequently Asked Questions

Is Buying Shares on the Record Date Enough to Receive a Dividend for NRIs?

Can an NRI Buy Shares on the Ex-Dividend Date and Still Get the Dividend?

Which Date Is More Important for an NRI Investor – Ex-Dividend Date or Record Date?

Where Is the Dividend Credited for NRI Investors?

Is Dividend Income Taxable for NRIs in India?