The Securities and Exchange Board of India (SEBI) on September 16, 2024, issued a circular regarding the enabling T+2 trading of Bonus shares where T is the record date.
To streamline the process of the 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 proposing a bonus issue shall apply for the in-principle approval under Regulation 28(1) of SEBI (LODR) Regulations, 2015, to the Stock Exchange within 5 working days from the date of the board meeting approving the Bonus issue.
• The Issuer while fixing and intimating the record date (T day) to the Stock Exchange as required under Regulation 42(1) of SEBI (LODR) Regulations, 2015, for the proposed bonus issue, shall also take on record deemed date of allotment on next working date of record date (T+1 day).
• Upon receipt of intimation of the record date (T Day) and requisite documents from the Issuer, 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).
• After issuance of notification issued by the Stock Exchange for acceptance of the record date, the Issuers shall ensure submission of the requisite documents to Depositories for credit of bonus shares in the depository system by 12 P.M. of the next working day of the record date (i.e. T+1 day)
• The Issuer shall ensure the upload of the distinctive number (DN) ranges in the DN database of the depository and stock exchange(s)shall ensure the updation of relevant dates before the credit of bonus shares.
• The shares allotted pursuant to the bonus issue shall be made available for trading on the next working date of allotment (T+2 day)
[Circular No. CIR/CFD/PoD/2024/122]
