Legal requirements for the issue of bonus shares in india

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A bonus share is a free additional share which is given to the shareholders as a bonus. Before you start trading in stock markets, you are compulsorily required to open a Demat Account and a Trading Account. Always remember that opening a Demat Account with a trusted and reliable stock broker will provide you with manifold benefits, and help in making wise investment decisions.

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Copyright © IIFL Securities Ltd. All rights Reserved. Gold/NCD/NBFC/Insurance and NPS As an investor, you must understand the tax implications on a bonus issue. According to the relevant provisions of the Income Tax Act, 1961, there are no tax implications on a bonus issue for shareholders in the particular financial year. This means that you don’t have to pay taxes for receiving the bonus shares. However, the gains, if any, made for trading in the additional shares are categorised as capital gains, and taxed accordingly. www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

Delivery Brokerage for Lifetime Bonus shares issue is also known as: Download The App Now These are additional shares given to shareholders without any charges. For instance, if a company notifies 1:2 bonus issue, it means that the shareholders will receive two additional shares for one existing share. So, a shareholder having 100 existing shares will now have additional 200 shares, taking the total number of shares to 300.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248 “Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day.” – Issued in the interest of investors.” | “KYC is one time exercise while dealing in securities markets – once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.” | “No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.” Just a few steps to open your FREE Demat Account

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One thought on “Legal requirements for the issue of bonus shares in india

  • 30.11.2021 at 18:05
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    I apologise, but, in my opinion, you commit an error. I can prove it. Write to me in PM, we will discuss.

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