Streamlining Bonus Shares: Understanding SEBI’s New T+2 Trading Rule!

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SEBI has introduced a new circular to streamline the trading of bonus shares by shortening the time it takes for these shares to be credited and made tradable. Effective from October 1, 2024, this guideline is designed to make the process faster, more efficient, and more investor-friendly.

Here’s what you need to know about SEBI’s new T+2 trading rule:

Traditionally, after a bonus share announcement, it could take 15-20 days (or longer for few companies) for the shares to be credited to your account under the permanent ISIN and become tradable. SEBI’s new circular shortens this waiting period significantly.

  • T (Record Date): The date on which the company finalizes the list of shareholders eligible for bonus shares.
  • T+1 Day: Bonus shares are credited to your demat account by 12 PM.
  • T+2 Day: You can begin trading these bonus shares.

Previously, bonus shares were first credited under a temporary ISIN before moving to a permanent ISIN. With SEBI’s updated rule, shares are now credited directly to the permanent ISIN, simplifying the process.

Issuing companies are required to obtain approval for bonus issues within 5 working days of the board meeting that approves the bonus. They must also ensure that bonus shares are credited by 12 PM on the T+1 day. Failure to meet these deadlines will result in penalties.

For investors, this change means faster access to bonus shares, reducing delays in trading. This quicker process provides an advantage in dynamic markets, allowing investors to realize the value of their bonus shares sooner and improve liquidity and portfolio management.

2 Likes
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@iamshrimohan is it currently live at dhan as you know reliance has set record date of october 28 for their bonus issue so within T+ 2 day from record date i will be able to view the bonus shares of reliance and will be able to sell them as well on dhan, right???

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is it currently live at dhan as you know reliance has set record date of october 28 for their bonus issue so within T+ 2 day from record date i will be able to view the bonus shares of reliance and will be able to sell them as well on dhan, right???
Can anybody from dhan please answer my question

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@ARVIND1 Apologies for missing on this thread. The rule is applicable for bonus meetings held after 1st October. Incase of Reliance, the meeting was done in around September. So here the old time lines will follow. Consider T+2 listing of bonus shares from Q4 onwards.

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Dhan, dear I made an investment in Reliance in September for about 3027 rupees (1 quantity) on September 5, 2024, but after record date, Dhan is only showing 1513.65 rupees on my portfolio. Could you perhaps explain why this is the case? Where was the amount I had left?
Thank you.

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@jaswantTrader Reliance issued bonus in the ratio 1:1 for the shareholders as on record date 28th October 2024. On the ex-date, the price gets reduced (as the bonus shares are being issued). Once the bonus shares are credited, you can see your quantity also as updated. Note that bonus shares take time to get reflected in the holding.

For every corporate action, we write on the community covering all the FAQs. For Reliance, you can find here.