Generated by claude-sonnet-4-6 · 2026-06-15 07:07 · grounding rag
Model Answer
Record Date is a date declared in advance by a company to determine which shareholders are entitled to receive corporate benefits such as dividends, bonus issues, or rights issues. Only investors whose names appear in the company's records on the record date are eligible for these benefits. With depositories in place, physical registration of shares is not required, as investor holdings are maintained electronically.
Source: Chapter 8, Section 8.3 — Book-closure/Record date
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Explanation
- The examiner expects you to define record date clearly and link it to corporate benefits (dividend, bonus, rights).
- Mention that it is declared in advance so buyers have time to register shares.
- The point about depositories maintaining records electronically is a value-added line that can fetch full marks.
- Do not confuse record date with book closure — book closure is the closing of the register; record date is the specific cut-off date within or related to that period.