The Securities and Exchange Board of India (Sebi) has proposed to reduce the timeline for bonus issuance to just two days after the record date.
The move is to facilitate fast credit and trading of shares allotted during the bonus issue and reduce investors’ risk of market volatility due to any delay in the credit.
At present, there are no specific timelines for credit of bonus shares and trading of such shares from the record date of the issue.
However, as a market practice, the bonus shares are made available for trading between two and seven working days post the record date. The market regulator has been batting for shorter timelines for settlement across market segments. Shorter timelines have already been made effective in the listing and secondary market.
First Published: Aug 05 2024 | 6:25 PM IST
