Regulator proposes faster credit and trading of bonus shares
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The Securities and Exchange Board of India (Sebi) has proposed faster credit and trading of bonus shares. It has suggested to streamline and reduce timelines of bonus issue enabling T+ 2 trading of shares post record date. The move is aimed to reduce investors' risk of market volatility due to any delay in credit of bonus shares. At present, there are no specific timelines regarding credit of bonus shares and trading of such shares, from the record date of the issue. "...absence of any specific guidelines on this aspect leads to non-uniformity with respect to timelines in which shares are credited and made available for trading in bonus issue," Sebi said in a discussion paper.Currently, existing shares continue to remain available for trading post record date under existing ISIN and shares issued pursuant bonus issue are credited in existing ISIN and same are made available for trading in 2-7 working days post record date.To...