At what price my the cash settlement of the fractional bonus share is done if the closing price of that particular share on the ex-date is Rs.1000? @ShubhS9
The fractional shares are consolidated and alloted to the trustee appointed by the board, who will sell the shares at prevailing market price. After that the sale proceeds will be credited to eligible shareholders bank account according to their fractional entitlement. Though this is old one, but you can refer to this notice from Astral Pipes.
So the retail client judge how much money he or she will received from cash settlement
How much amount one will receive depends on their fractional entitlement, and also at what price these share will be sold at.