Bonus Shares: Market regulator SEBI has changed the rules related to trading of bonus shares. Now T+2 rule will be applicable in the trading of bonus shares. Due to this, the process of trading of bonus shares will be faster. In this, T will be considered as the record date. SEBI has also issued a circular on Monday regarding the new rule. Now T+2 rule will be applicable on all bonus shares issued after October 1. You will be able to start trading them 2 days after the record date. Currently, investors have to wait for 2 weeks to trade these shares. Investors will benefit a lot from the new rules of SEBI.
Penalty will be imposed for not following T+2 rule
SEBI has said in its circular that if the T+2 rule is not followed, then a fine can also be imposed on the companies. The date on which investors receive bonus shares is called the record date. With the change in these rules by SEBI, you will now be able to trade your bonus shares soon. The complete details of the new rule have been given in SEBI’s circular.
This process has to be followed
- The company proposing a bonus issue will have to apply for approval of the stock exchange within 5 days from the date of the board meeting approving it.
- While fixing the record date (T Day) for the bonus issue and informing the stock exchange, T+1 information will also have to be disclosed.
- On receipt of the information regarding the record date and documents, the stock exchange will approve the record date and also inform the number of shares to be issued in the bonus issue in its notification. This will also include T+1.
- After the issuance of the notification of the stock exchange, the company will submit the necessary documents for credit of bonus shares in the depository system by 12 noon on T+1 day.
- The company has to upload the DN range in the DN database of the depository.
- Thereafter, the shares issued under the bonus issue will be made available for trading on T+2.
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