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The SEBI ICDR Regulations lay down guidelines relating to conditions for various kinds of issues including public and rights issue. The ICDR Regulations provide detailed provisions relating to public issue such as conditions an IPO and Further Public Offer (FPO), conditions relating to pricing in public offerings, conditions governing promoter’s Please watch: "Intro to Stock Market Series - CA/CS/CMA Students" https://www.youtube.com/watch?v=Mb5n4e55mnY --~-- Bonus issue from free reserves: Bonus shares can be issued only out of free reserves built out of genuine revenue profits or share premium collected in cash. Revaluation reserve not eligible: Reserve created by revaluation of assets cannot be capitalized for issue of bonus shares. SEBI Introduces New Guidelines for rights issue or bonus issue, The disclosures prescribed are similar to disclosures prescribed in case of a preferential issue under the SEBI (Issue SEBI has issued detailed guidelines in respect of issue of securities to public. The guidelines were first issued on 11th June, 1992 and were amended subsequently from time to time. SEBI issued consolidated guidelines as SEBI (Disclosure and Investor Protection) Guidelines, 2000 vide its circular No. 1 dated 19-1-2000.
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Bonus shares can be issued only if Articles of Association permit such an issue. SEBI Guidelines Regarding Issue of Bonus Shares: Securities and Exchange Board of India (SEBI) guidelines are to be followed for issue of bonus shares:-No company shall, issue the shares by the way of bonus unless the benefits are extended to the shareholders.
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No bonus issue shall be made within 12 months of a public/right issue (clause ‘J’ of SEBI Guidelines dated 27.1.2002) Guideline # 2. Right of FCD/PCD holders: The proposed bonus issue should not dilute the value of rights of the fully or partly convertible holders. SEBI Guidelines for Issue of Bonus Shares: A Company may issue bonus shares without obtaining prior approval but only after a period of 12 months after a public/rights issue and after safeguarding the rights of fully convertible and partly convertible debentures falling due for conversion within 12 months from the date of bonus issue. GUIDELINES FOR BONUS ISSUES 15.1.1 The bonus issue shall be made out of free reserves built out of the genuine profits or share premium collected in cash only.
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SEBI has issued detailed guidelines in respect of issue of securities to public. The guidelines were first issued on 11th June, 1992 and were amended subsequently from time to time. SEBI issued consolidated guidelines as SEBI (Disclosure and Investor Protection) Guidelines, 2000 vide its circular No. 1 dated 19-1-2000. SEBI Guidelines for Investor Protection.
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As per the rules, a bonus 107. CHAPTER XI - BONUS ISSUE.
15.1.2 Reserves created by revaluation of fixed assets are not capitalised.
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