CAIRR Update September 17, 2024

With the intent to streamline the process of Bonus issue of equity shares, SEBI has decided to reduce the time taken from the record date for trading and the credit of bonus shares, under SEBI (ICDR) Regulations, 2018. The shares allotted pursuant to the bonus issue shall now be made available for trading on the next working date of allotment (T+2 day).

The summary of the operational procedure to be followed by the Issuers, the Exchange and the Depositories is as follows:

1. 1. The Issuer shall apply for the in-principle approval for the Bonus Issue to the Stock Exchange (SE) within 5 working days from the date of Board Meeting approving the same.
   2. The Issuer while fixing and intimating the record date (T day) to the SE for the proposed bonus issue, shall also take on record deemed date of allotment on next working date of record date (T+1 day).
   3. A notification shall be issued by the SE including the deemed date of allotment (T+1 day), accepting the record date and notifying the number of shares considered in the bonus issue.
   4. Further to the above, the Issuers to ensure submission of the requisite documents to Depositories for the 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).
   5. The Issuer shall upload the distinctive number (DN) that ranges in the DN database of the depository and SE shall update relevant dates before credit of bonus shares.
   6. The shares allotted pursuant to the bonus issue shall be made available for trading on the next working date of allotment (T+2 day).
   7. Requirement of credit of bonus shares in temporary ISIN shall be exempted in case of bonus issue of equity shares, and credit of shares directly in permanent ISIN (existing ISIN) shall be permitted in case of bonus issue of equity shares. 

   
   Click here to view the SEBI Circular.

   Click here to view the NSE Circular.