Bonus shares are additional shares issued by a company to its existing shareholders, free of cost. These shares are distributed in a predefined ratio (e.g., 1:1 or 2:1), based on the number of shares a shareholder already owns. However, to receive these shares, understanding the record date for bonus share is crucial. In this article, we’ll explore key concepts like what the record date is, how to ensure eligibility, and when bonus share will be credited to your demat account.
The record date is a pivotal concept in corporate actions, such as bonus share issuance, as it determines which shareholders are eligible to receive the announced bonus share. It is the cutoff date set by the company, and only those who own shares on this date will qualify for the bonus share. Understanding the record date and its relationship with the ex-date is essential for investors to benefit from the bonus issue.
The record date is the date on which the company identifies shareholders who are entitled to receive the bonus share. If you own the company’s shares as of the record date, you are considered eligible for the bonus issue. Shareholders who purchase shares after this date will not qualify, as their names will not appear in the company’s records.
This date ensures that the company’s records reflect the rightful shareholders eligible for the bonus share. The record date plays a significant role in determining eligibility, as only the shareholders listed in the company’s registry as of this date will receive the bonus share.
For instance, if the bonus record date is November 30, 2024, the ex-date will likely be November 29, 2024. You must purchase shares before the ex-date to ensure eligibility. Understanding these dates allows investors to plan their trades effectively and benefit from bonus issues.
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Bonus shares are additional shares issued by a company to its existing shareholders, free of cost. To qualify for bonus share, you need to follow specific steps and timelines. Here’s how you can ensure that you receive bonus share in your demat account:
The most crucial step is to ensure you are a shareholder on the company’s record date. The record date is the cut-off date set by the company to determine eligibility for receiving bonus share. To qualify, you must purchase the shares at least one day before the ex-date, which is typically one business day before the record date. If you buy shares on or after the ex-date, you will not be eligible for the bonus share.
Stay updated on corporate announcements made by the company. Information about bonus issues, including the record date, is usually communicated through stock exchange filings, company press releases, and investor presentations. Keeping track of these updates ensures you don’t miss out on eligibility requirements.
Even if you hold shares before the ex-date, selling them before the record date can disqualify you from receiving the bonus shares. To avoid this, ensure that your holdings remain intact until the record date has passed.
Once the record date is over, the company processes the issuance of bonus share. After completing the necessary regulatory and corporate actions, the bonus shares are credited directly to the demat accounts of eligible shareholders, usually within 15–20 business days.
The timeline for bonus share to be credited to a shareholder’s demat account generally follows a structured process. Bonus shares are usually credited within 15–20 business days after the record date. However, the exact timing can vary depending on the company’s internal processes, regulatory approvals, and the depository’s procedures. Companies typically provide an estimated credit date when announcing a bonus issue, helping shareholders plan accordingly.
Once the record date has passed, the company completes the necessary corporate actions, including obtaining approvals from regulatory bodies such as SEBI (Securities and Exchange Board of India). After these processes are finalized, the bonus shares are credited to the eligible shareholders’ demat accounts. Investors can track these updates through stock exchange notifications or their broker platforms.
For example, if Reliance Industries declares a bonus issue with a record date of November 30, shareholders who meet the eligibility criteria can expect the shares to be credited by mid-December. Reliance Industries typically provides precise timelines in their official announcements to ensure transparency and shareholder confidence.
Similarly, if BPCL sets a record date for its bonus issue as December 10, the bonus shares are likely to be credited by late December. Shareholders are encouraged to check their demat accounts and confirm the credit after the expected timeline, keeping an eye on announcements from both the company and stock exchanges.
Once a company issues bonus shares, shareholders can confirm the credit of these shares in their demat accounts. Follow these steps to verify:
Access your demat account using your broker’s platform (e.g., Zerodha, Groww, Upstox, ICICI Direct).
Most platforms have a dedicated section where you can view all your shareholdings. Look for the tab labeled “Portfolio,” “Holdings,” or “My Investments.”
Look for the specific company that issued the bonus shares. The additional shares will typically appear as part of your total holdings under the company’s name.
Verify if the number of shares aligns with the bonus issue ratio. For instance, if the company declared a 1:1 bonus issue, you should see your total shareholding doubled.
To maintain records, download or request a transaction statement from your broker, reflecting the credit of bonus shares.
If needed, log in to your account with the depository (NSDL or CDSL) linked to your demat account to confirm the credit of bonus shares directly.
Understanding key dates like the record date and ex-date is essential for ensuring eligibility for bonus shares. By staying informed about corporate announcements and maintaining your shareholding through these critical dates, you can maximize the benefits of bonus issues. For investors, companies like Jainam Broking Ltd. provide valuable insights and assistance in navigating such corporate actions, ensuring a seamless experience. Whether you’re managing bonus share or exploring other investment opportunities, leveraging expertise from trusted firms like Jainam Broking Ltd. can enhance your financial journey.
Written by Jainam Admin
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The record date is the cutoff date set by a company to determine the list of shareholders eligible to receive bonus shares. Shareholders who hold the shares as of the record date qualify for the bonus issue.
The record date for bonus shares is the date on which the company identifies its shareholders eligible for the bonus issue. Shareholders must hold the shares on this date to receive the bonus shares.
The record date is when the company finalizes the eligible shareholders for bonus shares, while the ex-date is the last date before which you must buy the shares to be eligible. The ex-date is usually one business day before the record date.
Bonus shares are typically credited to the shareholder’s demat account within 15–20 business days after the record date, depending on the company’s and regulatory processes.
If Reliance Industries announces a bonus issue, the bonus shares are usually credited within a few weeks after the record date. The exact timeline is communicated by the company in its official announcements.
The BPCL bonus record date refers to the specific date set by Bharat Petroleum Corporation Limited to identify eligible shareholders for their bonus issue. Shareholders need to check BPCL’s announcements for this information.
No, shares purchased after the record date will not make you eligible for the bonus shares. You must buy them before the ex-date to qualify.
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