To have uniformity in timelines for credit and trading of bonus shares and facilitate fast credit and trading of shares allotted under bonus issues, and reduce investors’ risk of market volatility due to any delay in credit of bonus shares, after consulting with the market participants, SEBI has issued the circular enabling T+2 trading of Bonus shares where T is the record date.
You can check the highlights from the consultation paper here:
Key highlights from the SEBI Circular:
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The company proposing a bonus issue should apply for the in-principle approval to the Stock Exchange within 5 working days from the date of the board meeting approving the Bonus issue.
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While fixing and intimating the record date (T day) to the Stock Exchange for the proposed bonus issue, The company has to take the next working date of record date (T+1 day) on record as deemed date of allotment.
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After receiving intimation of the record date (T Day) and requisite documents from the company the Stock Exchange(s) shall issue a notification accepting the record date and notifying the number of shares considered in the bonus issue. The notification shall include the deemed date of allotment (T+1 day).
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After issuance of notification issued by the Stock Exchanges, The Company shall ensure submission of the requisite documents to Depositories for credit of bonus shares in the depository system by 12 noon of next working day of the record date (i.e. T+1 day).
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The shares allotted under the bonus issue shall be made available for trading
on the next working date of allotment (T+2 day) -
This circular shall apply to all bonus issues announced on or after October 01, 2024.
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Bonus shares will be directly credited to the permanent ISIN, eliminating the need for temporary ISINs.
Link to the full circular from SEBI: