The article analyses SEBI's recent decision to shorten the time frame for crediting bonus shares and initiating their trading from the record date of the bonus issue. Under the new guidelines, when issuers fix and inform the stock exchange of the record date (T day), they must also specify the deemed date of allotment as the following working day. Additionally, the bonus shares will be eligible for trading on T+2 day, enhancing the efficiency of the bonus share issuance process. The article discusses the following key topics:
‣ Current Regulatory Framework for Bonus Issues
‣ Background and Rationale behind the Amendment
‣ SEBI's Reduction in Time for Credit and Trading of Bonus Shares
‣ Conclusion
