When will the bonus shares reflect in my Demat account?
When a company announces a bonus share issue, it's a way of distributing accumulated earnings to shareholders in the form of additional shares. Here's a breakdown of how and when these bonus shares will reflect in your Demat account:
- Timeline for Bonus Shares: After the specified record date, it will take up to 15 working days for the bonus shares to appear in your Demat account.
- Adjustment in Notional P&L: You might notice a temporary drop in the Notional P&L of your holdings post the bonus announcement. However, this will adjust within the 15-working-day timeline.
- Price Adjustment Post Bonus: While the number of shares increases, the price per share may adjust based on market dynamics after the bonus issue.
Let's say, if B Ltd. declares a bonus share issue at a 2:1 ratio (for every share you own, you receive two additional shares) and sets the record date for 15th June. Rashmi, a FYERS client, has 200 shares of B Ltd. priced at ₹500 each through FYERS, post-bonus, she'll possess 600 shares. The 400 bonus shares will reflect in Rashmi's Demat account within 15 working days from 15th June and the share price will be adjusted based on market dynamics. - ISIN Remains Unchanged: It's crucial to note that issuing bonus shares does not lead to a change in the ISIN (International Securities Identification Number) of the scrip.
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