New Delhi: NBCC bonus shares can be credited into demat account of eligible retail investors by Wednesday, October 09, 2024 if capital market regulator Securities and Exchange Board of India’s (Sebi) new rules regarding credit and trading of bonus shares will be applicable to NBCC’s bonus issue as well.

Recently, the market watchdog had brought a new rule regarding credit of bonus shares in demat account of investors. According to Sebi, issuers must credit bonus shares within 48 hours of the record date. But this rule is in force from October 01, 2024. NBCC bonus share issue was approved before Sebi’s diktat had come. So, it is to been seen whether application of this rule implies to the stocks of construction company NBCC or not? If it does imply, then, cheers for investors, they will get free shares by Wednesday!

NBCC Ex Bonus Date = NBCC Bonus Share Record Date

The Navratna CPSE, NBCC’s bonus share issue’s record date is Monday, October 07, 2024. Only those investors would get the bonus shares, who have bought the company’s shares latest one day before the record date i.e. by Friday, October 04, 2024. Since, all stocks in India now follow T+1 settlement cycle, so investors who would have  bought NBCC shares on Monday, they will not be eligible for the bonus issue.  Note that under T+1 settlement cycle, record date and ex-date are on the same day. So, NBCC Ex Bonus Date is also on Monday.

What is T+1 Settlement Cycle?

T refers to the day of the record date. So, T+1 means 24 hours from the day of the corporate action. While, ex-date is the day from which the stock will not carry the benefits of the record date. Like in case of NBCC bonus share issue,  the equities will not carry the benefit of the bonus share issue from the record date.   At the time fo writing this article, NBCC share price traded at Rs 114.05 on the BSE.