SEBI Proposes Uniform Timeline for Timely Credit and Trading of Bonus Shares

SEBI has proposed a uniform timeline for the timely credit and trading of bonus shares to streamline the process for T+2 trading post record date. Currently, ICDR rules lack specific guidelines for such timelines, causing non-uniformity. SEBI seeks comments on these proposals by August 26.

In an effort to streamline the credit and trading process of bonus shares, the Securities and Exchange Board of India (SEBI) has proposed a uniform timeline. This move aims to facilitate T+2 trading post record date.

Presently, the ICDR (Issue of Capital and Disclosure Requirements) outlines overall timelines for implementing bonus issues but lacks specific guidelines for the credit and trading of shares from the record date. This absence leads to inconsistencies in the timeline for making shares available for trading.

To ensure timely implementation and reduce market volatility risks for investors, SEBI is advocating for set timelines to be prescribed, making shares available for trading by the T+2 day. They are inviting public comments on this proposal until August 26.