By When Stock Split Shares Get Credited Into Your Demat Account?

Probably if you are a stock market investor and keep a tab of all the corporate actions then you indeed must be aware about stock split. Typically in a stock split a company divides its existing shares into multiple shares to boost the liquidity of the shares. In simple terms, the process of dividing the company's outstanding shares into further small shares is referred as stock split.

So, while the company aims to meet some of the objectives through the move such as

Market price of the scrip reduces in proportion to the number of shares extracted.

Liquidity in the scrip get enhanced

Also, note that in the stock split, the company's authorised capital gets splitted.

What investors get from the stock split?

The stock split is on the face value and as an illustration if the stock has a Face value of Rs. 10 and it as a result of the split is made to Rs. 5 then it is said to be a 1:2 stock split. In such a case if you previously owned 1 share in the scrip then upon the split you will get 1 more share.

So, while you have understood, how it works, you may be willing to know as to when the shares upon the stock split may get credited to your account.

When split shares of a company get credited into your account?

With all such corporate actions there are some associated dates as in ex-date and record-date. Likewise, while on the ex-date, the stock adjust in price with respect to the corporate action i.e. stock split here, it is the record date basis which the company determines the eligibility of shareholders who will be entitled to receive split shares.

Now, for the split shares to be credited successfully to your demat account typically it takes 2 working days from the record date.