Why are bonus shares not shown in my portfolio though the price of my holdings has reduced?
- SEBI has reduced the time for crediting and trading bonus shares to two days from the record date. This change will be applicable to all bonus issues announced after October 1, 2024.
- The bonus shares will appear under your Portfolio on our trading platforms only after they are approved for trading.
- Until the bonus shares are credited to your Demat account, your holdings on our trading platforms will show a temporary P&L drop. Once the bonus shares are credited to your demat account, the correct value will be displayed.
For example, Axis Bank is trading at Rs. 900 and announces a 2:1 bonus issue where:
- The ex-date is 1st Feb
- The record date is also 1st Feb
This implies that for every share held on the ex-date, investors are eligible to receive 2 bonus shares. Since the number of shares increases after a bonus issue, the share price drops from the ex-date in proportion to the issue. As a result, the share price of Axis Bank will fall to approx. Rs. 300 from 1st Feb.
Mr. Viraj was holding 100 Axis Bank shares on the ex-date and hence is eligible to receive 200 bonus shares. Since the RTA takes up to 2 days to issue the bonus shares to a holder's account, the quantity shown in his Portfolio on MyGeojit, SELFIE, FLIP, and TraderX will be the actual quantity held in his demat account, i.e., 100 shares.
On the other hand, the purchase price will be adjusted as per the bonus shares to be received from the ex-date (1st Feb).
Hence, till the bonus shares are credited to Mr. Viraj's demat account:
- The holding quantity in his Portfolio will be the original quantity held, i.e., 100 shares.
- The average purchase price will be less than his actual purchase price, as it is calculated after accounting for the bonus shares to be received.
As soon as the RTA credits the bonus shares, his Portfolio will reflect the correct quantity value, i.e., 300 shares.
Please remember that you are eligible to receive bonus shares only if you held shares of the concerned company as of the record date of the issue. That is, for the shares to be in your name as per company records, you must have bought them before the ex-date/sold them on or after the ex-date.
If the bonus shares you are eligible to receive are not in absolute numbers, the balance amount will be credited to the bank account registered with Geojit. For example, it is a 1:3 bonus issue (1 bonus share for every 3 shares held), and you hold 10 shares. Since your holdings are not divisible by 3, the additional eligible amount will be credited to your registered bank account.Still need help? Create Ticket
