It has recommended to streamline and scale back timelines of bonus difficulty enabling T+ 2 buying and selling of shares submit file date.
The transfer is aimed to cut back traders’ threat of market volatility as a result of any delay in credit score of bonus shares.
At current, there aren’t any particular timelines relating to credit score of bonus shares and buying and selling of such shares, from the file date of the difficulty.
“…absence of any particular pointers on this side results in non-uniformity with respect to timelines during which shares are credited and made accessible for buying and selling in bonus difficulty,” Sebi mentioned in a dialogue paper.At present, present shares proceed to stay accessible for buying and selling submit file date underneath present ISIN and shares issued pursuant bonus difficulty are credited in present ISIN and identical are made accessible for buying and selling in 2-7 working days submit file date.To have uniformity in timelines for credit score and buying and selling of bonus shares, it’s crucial that timelines are prescribed for credit score and buying and selling of bonus shares from the file date, making certain bonus difficulty is carried out in a well timed method, Sebi mentioned.As per guidelines, an issuer saying a bonus difficulty is required to implement it inside 15 days from the date of approval of the difficulty by its board of administrators.
