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Question
The issue of bonus shares must be in accordance with the guidelines issued by the__________.
The issue of bonus shares must be in accordance with the guidelines issued by the__________.
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Solution
The correct option is C Securities and Exchange Board of India
Bonus shares are shares allotted to existing equity shareholders without any consideration being received from them,in cash or kind. SEBI has prescribed certain guidelines for the issue of bonus shares.The bonus issue can be made only out of free reserves built out of the genuine profits or share premium collected in cash.
Bonus shares are shares allotted to existing equity shareholders without any consideration being received from them,in cash or kind. SEBI has prescribed certain guidelines for the issue of bonus shares.The bonus issue can be made only out of free reserves built out of the genuine profits or share premium collected in cash.
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