In a bid to speed up the process of crediting and trading bonus shares, markets regulator Sebi on Monday introduced new guidelines, whereby investors will be able to trade bonus shares just two days after the record date starting October 1.
The current ICDR (Issue of Capital and Disclosure Requirements) rules prescribe overall timelines regarding the implementation of the bonus issue. However, there is no specific timeline for credit of bonus shares and trading of such shares, from the record date of the issue.
Currently, after a bonus issue, existing shares continue to trade under the same ISIN, and the new bonus shares are credited and available for trading within 2-7 working days after the record date.
Under the guidelines, trading in bonus shares will now be enabled on the second working day (T+2) after the record date, boosting market efficiency and reducing delays.
This will be applicable for all bonus issues announced on or after October 1, 2024, the Securities and Exchange
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