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Bonus Issue Compliance — Listed Company Free Reserve Capitalisation & SEBI ICDR

CA support for bonus issue by listed companies — free reserve and securities premium verification (Section 63 Companies Act 2013), SEBI ICDR Chapter X compliance, CA certificate on free reserve availability, solvency certificate, Board and shareholder approval support, record date to allotment within 15 working days, and stock exchange listing of bonus shares.

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STARTING FROM₹24,999
TYPICAL TIMELINE21 days
APPLICABLE TOCompany

Regulatory Framework

Companies Act, 2013: Section 63 — bonus shares from free reserves, securities premium, capital redemption reserve; Section 63(3) — ordinary resolution. SEBI ICDR Regulations 2018: Chapter X, Regulations 292-295.

Overview

A bonus issue (also called a scrip issue or capitalisation issue) is the issuance of additional shares to existing shareholders by capitalising the company's free reserves, securities premium account, or capital redemption reserve — at no cost to the shareholders.

How It Works

  1. 1

    Bonus Issue Eligibility — Section 63 Conditions Verification

    Verify all eligibility conditions under Section 63 Companies Act 2013 and SEBI ICDR Regulations 2018 Chapter X.

    Government2-3 days

Frequently Asked Questions

What sources can be used for a bonus issue?
Section 63(1) permits: free reserves, securities premium account, and capital redemption reserve. Revaluation reserves cannot be used.

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