It has advised to streamline and cut back timelines of bonus problem enabling T+ 2 buying and selling of shares put up document date.
The transfer is aimed to cut back traders’ danger of market volatility as a result of any delay in credit score of bonus shares.
At current, there are not any particular timelines concerning credit score of bonus shares and buying and selling of such shares, from the document date of the problem.
“…absence of any particular pointers on this facet results in non-uniformity with respect to timelines during which shares are credited and made out there for buying and selling in bonus problem,” Sebi mentioned in a dialogue paper.At the moment, current shares proceed to stay out there for buying and selling put up document date beneath current ISIN and shares issued pursuant bonus problem are credited in current ISIN and similar are made out there for buying and selling in 2-7 working days put up document 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 document date, making certain bonus problem is carried out in a well timed method, Sebi mentioned.As per guidelines, an issuer saying a bonus problem is required to implement it inside 15 days from the date of approval of the problem by its board of administrators.
