To streamline the process of Bonus issue of equity shares, in consultation with the market participants, it has been decided to reduce the time taken for credit of bonus shares and trading of such shares, from the record date of the Bonus Issue under SEBI (ICDR) Regulations, 2018.
The operational procedure to implement the above is as given below
The issuer must apply for in-principle approval for the bonus issue under Regulation 28(1) of SEBI (LODR) within 5 working days of the board approving the bonus.
The issuer must notify the stock exchange of the record date (T day) and the deemed date of allotment (T+1 day).
Once the stock exchange accepts the record date and requisite documents, it will notify the market, including the deemed date of allotment (T+1).
By 12 PM on the T+1 day, issuers must ensure the required documents are submitted to depositories for crediting the bonus shares.
The issuer must upload the DN ranges before the shares are credited.
The newly allotted bonus shares will be available for trading on the T+2 day.
Bonus shares will be directly credited to the existing ISIN without using a temporary ISIN.
This new process is mandatory for all bonus issues announced on or after October 1, 2024
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