SEBI Reduced Bonus Shares Allotment Time to ‘T+2’ Effective from 1st October, 2024

Current Context: The Securities and Exchange Board of India (SEBI) has announced that starting from October 1, 2024.

• The allotment and trading of bonus shares will be reduced to just two working days after the record date, known as 'T+2’.
• This change aims to streamline the process and enhance market efficiency by reducing the waiting period for investors to trade their bonus shares.
• Previously, the timeline for crediting and trading bonus shares was longer, often leading to delays.
• This move is expected to benefit investors by minimizing the time gap between the allotment and trading of bonus shares, making the market more responsive and investor-friendly.

Question:

1 From which date will the new SEBI rule regarding the reduced timeline for allotment and trading of bonus shares come into effect?

• A) September 1, 2024
• B) October 1, 2024
• C) November 1, 2024
• D) December 1, 2024

Answer: B) SEBI has announced that the new rule for reducing the timeline for allotment and trading of bonus shares will come into effect from October 1, 2024.