SEBI has issued a Consultation Paper on Streamlining the process and reduction in timelines of Bonus Issue (enabling T+2 trading of shares post record date where T being record date). 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 it is as given:
- 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 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).
- In receipt of intimation of the record date (T Day) and requisite documents from the company, the Exchange(s) shall issue notification accepting the record date and notifying the number of shares considered in the bonus issue. The notification shall consist of the deemed date of allotment (T+1 day).
- After issuance of Exchange notification for acceptance of record date, the issuers shall ensure submission of the requisite documents to Depositories for credit of bonus shares in the depository system latest by 12 P.M. of next working day of the record date (i.e. T+1 day).
- The Issuer shall ensure upload of the distinctive number (DN) ranges in the DN database of the depository and stock exchange(s) shall ensure updation of relevant dates before 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).
The comments/ suggestions should be submitted latest by August 26, 2024, through the online web-based form.
