SEBI has issued a new guideline.
There is good news for stock market investors. Market regulator SEBI has provided a new facility to these investors. SEBI has issued a new guideline to expedite the process of bonus shares coming into the account and its trading. Under this, investors can trade in bonus shares within two days after the record date. According to Bhasha’s news, this system will come into effect from October 1.
There is no specific time limit for trading such shares
According to the report, the current ICDR (Issue of Capital and Disclosure Requirements) rules prescribe timelines with respect to the implementation of bonus shares. However, there is no specific timeline for crediting bonus shares to the books and trading of such shares from the record date of issue. Currently, after the bonus shares are credited, trading in the existing shares continues under the same ISIN (Indian Securities Identification Number) and the new bonus shares are credited to the books and are available for trading within two to seven working days after the record date.
Market efficiency will increase and delays will decrease
Under these guidelines issued by SEBI, trading in bonus shares will now be possible within two working days (T+2) after the record date. This will increase market efficiency and reduce delays. The Securities and Exchange Board of India (SEBI) said in a circular that this will apply to all bonus shares declared on or after October 1, 2024. This move will reduce the time gap between bonus share allotment and trading, which is expected to benefit both issuers and investors.
SEBI cautions investors
The National Stock Exchange (NSE) has recently issued a warning to investors about fraudulent activities carried out by a unit, Lazard Asset Management India. The exchange has issued this warning after receiving a complaint against a WhatsApp group called Joe Ham. This group lures investors with offers to buy shares at discounted prices after market hours. This group has allegedly collected money from retail investors in the guise of seat trading accounts.
Latest Business News
