The much awaited bonus rewards are coming up! Stock exchange, NSE has fixed the record date of one of the biggest bonus issues of 2024 in the ratio of 4:1. NSE will be soon rewarding investors with four free shares for every 1 equity. Not just that the exchange is also likely to deliver a whopping 9,000% dividend to its shareholders ahead.
NSE Bonus Issue:
The exchange has received approval for the issuance of bonus equity shares by way of capitalization of reserves in the ratio of 4:1, i.e. 4 (Four) fully paid-up bonus equity shares of Re. 1/- (Rupee One) each for every 1 (One) fully paid-up equity share of Re. 1/- (Rupee One) each held to the shareholders of the Company holding shares on the Record Date (to be determined by the Board).
On September 17, 2024, NSE said, "The Bonus Equity Shares shall be allotted to the equity shareholders of the Company whose names appear in the Register of Members/Beneficial Owners' position of the Company as on the Record Date i.e. Saturday, November 02, 2024."
Also, the exchange's Register of Members and Share Transfer Books will be closed from Friday, October 04, 2024, to Saturday, November 02, 2024 (both days inclusive) ("Book Closure").
Here are certain key factors to note before applying for the NSE bonus issue:
NSE said, "For the sake of clarity and to bring transparency among all the concerned, the stakeholders are requested to note that the Company shall be following the below-mentioned terms and conditions for the processing of share transfer applications during the Book Closure period:
- The Company shall not entertain fresh applications for transfer of shares of the Company during the Book Closure period.
- Further, only such transfer applications where the Stage II documents (viz., documents required for processing the transfer of shares through corporate action form), complete in every respect, have been received before the commencement date of Book Closure would be undertaken for further processing.
- Should there be any deficiencies in the documents submitted, and consequent rejection of the same by the depositories, the parties will be allowed to rectify the deficiencies at least 5 days before the Record Date, failing which the applications will be put on hold to be executed post the allotment of bonus shares.
- Further, where deficiencies are not resolved and consequently shares are not credited to the buyer's Demat account, the bonus shares shall be credited to the account of the registered holder on the Record Date.
The 4:1 ratio of NSE means that the exchange will allot four new bonus shares to every 1 existing share.
For example: If an investor is holding 500 equity shares of NSE as of the record date, then they will receive 2,000 bonus shares, taking their total number of shares to 2,500 in NSE.
NSE Dividend:
Earlier, in May 2024, alongside the bonus issue, the exchange announced a final dividend of 9000% i.e. Rs. 90/- per equity share of Re.1/- each, fully paid up, for the financial year ended March 31, 2024.
It said, the final dividend, if approved, by Shareholders at the ensuing AGM, will be paid to the eligible shareholders on or before the 30th day from the date of the Annual General Meeting. For dividends, the paid-up share capital before the issue of Bonus Shares would be considered.
The National Stock Exchange (NSE) is the leading stock exchange in India and the fourth largest in the world by equity trading volume in 2015, according to the World Federation of Exchanges (WFE). NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data.
NSE has a fully integrated business model comprising our exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members with the rules and regulations of the exchange.
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