SEBI LODR Update: Clarification on Record Date Circular dated 7 February 2025
SEBI LODR Update: Clarification on Record Date Circular dated 7 February 2025
What’s New?
Three-Day Gap Required
A minimum of three working days must elapse between the board/shareholders’ approval date and the record date for any corporate action.
Note: Neither the approval date nor the record date itself counts toward these three days.
No More Transfer-Book Closures
SEBI has deleted Regulation 42(5) (effective 12 December 2024), so companies no longer need to announce any closure of transfer books for corporate actions.
What This Means for You
Plan Ahead: Obtain approvals well in advance to accommodate the three-day interval.
Skip the Notices: You can dispense with transfer-book closure announcements—focus only on fixing the record date.
Stay Compliant: Align dividend, rights-issue, bonus-issue or stock-split timelines to these new requirements.
Quick Reference
Pre-Amendment: 7 clear-day notice + mandatory book-closure.
Post-Amendment: 3 working-day gap from approval → record date; no book-closure notices.
Courtesy : PCS Tanisha Srivastava
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