When Bonus Shares Are Credited In Demat Account
Written by Upstox Desk
4 min read | Updated on August 07, 2025, 14:57 IST
What are bonus shares?
Why Do Companies Issue Bonus Shares?
When are Bonus Shares Credited?
How to check bonus shares in a Demat account?
Why is there a delay in the bonus shares appearing?
Are bonus shares taxable?
Does the share price decline after the bonus is announced?
Summing Up
FAQs
Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.
When investing in the stock market, investors are often rewarded with bonus shares, which are additional shares issued by a company at no cost as a way to share its profits without paying out cash. This is a popular method for companies to reward their shareholders and increase their stake in the business.
However, a common question many investors have is: When will these bonus shares reflect in my Demat account?
Suppose a company has recently announced a bonus issue and you’re waiting to see the shares appear in your portfolio. In that case, this article clearly explains the entire process, from important dates to when and how the bonus shares are credited to your Demat account, in a simple and easy-to-understand manner.
What are bonus shares?
Bonus shares are those additional shares which companies give to their existing shareholders without any charge. These are usually issued from the company's reserve fund or profits.
Example:
If a company has declared a bonus of 1:1, it means that one additional share will be available for every share.
Why Do Companies Issue Bonus Shares?
Companies issue bonus shares to reward existing shareholders, increase share liquidity, make the stock more accessible to retail investors, and enhance investor confidence. It’s also a sign of strong financial health.
Important Dates: Record Date and Ex-Date
Record Date
This is the date by which the company determines which investors are eligible for the bonus.
Ex-Date
This is usually a day before the record date. If you bought shares after the ex-date, you will not get the bonus.
Example:
| Event | Date | Implication |
|---|---|---|
| Ex-date | July 15, 2025 | Buy before this date to get bonus |
| Record date | July 16, 2025 | The company will see who has shares |
| Bonus credit date | Around July 23, 2025 | Bonus shares come to demat in 5–15 days |
When are Bonus Shares Credited?
The most common question investors have is: When are bonus shares credited to the Demat account?
Typically, bonus shares are credited within 7 to 15 days after the record date. This happens through a systematic step-by-step process:
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First, the company formally announces the bonus issue through an official notice to shareholders.
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Next comes the record date, which serves as the cut-off date for determining eligibility. If you hold the shares as of the date of this announcement, you qualify for the bonus.
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The ex-date, which usually falls one business day before the record date, is equally important. If you buy shares on or after the ex-date, you won’t be eligible for the bonus shares.
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After the record date, the company’s registrar and transfer agent (RTA) processes and prepares the allotment of bonus shares.
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Finally, within a few days, the bonus shares are automatically credited your Demat account; no further action is required on your part.
How to check bonus shares in a Demat account?
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From your broker’s app or website: Login Go to “Holdings” or “Portfolio” View the number of shares of the respective company
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From the NSDL/CDSL portal: Log in with your login ID View the holding report The bonus shares will be visible
Why is there a delay in the bonus shares appearing?
Sometimes the bonus shares do not appear immediately. This could be due to: Processing time by the company Delay in approval from the stock exchange Update time by NSDL/CDSL
Are bonus shares taxable?
No, there is no tax on bonus shares. But, capital gains tax may apply when you sell them. Since the purchase cost of bonus shares is considered to be zero, the entire sale amount may be taxable.
Does the share price decline after the bonus is announced?
Yes, as the total number of shares increases, the share price adjusts.
Example:
Befonus
1 share = ₹1000
After bonus 1:1
Now you have two shares
New price
₹500 per share
Total value remains the same
₹1000
Summing Up
Bonus shares are a simple and rewarding way for companies to thank their shareholders. If you hold the shares on the record date, you don’t need to do anything; the bonus shares will be automatically credited to your Demat account, usually within 7 to 15 days.
They may take a little more time to become tradable, but that’s normal. Bonus shares increase your shareholding and reflect the company’s strong financial position: all at no extra cost to you.
FAQs
Will buying shares on the record date get you bonus shares?
No. To be eligible for bonus shares, you must buy the shares at least one day before the ex-date, because the delivery of shares in India takes T+1 day.
Can I sell shares after the record date and still get bonus shares?
Yes, if you held shares on the record date, you will get bonus shares.
Do I need to fill out any form to get bonus shares?
No. Bonus shares are automatically credited to your Demat account if you are eligible. There's no need to apply, submit a request, or pay any fees.
Why haven’t my bonus shares shown up yet?
It may take 7 to 15 business days for the bonus shares to be reflected after the record date.
Are bonus shares beneficial?
Yes, they increase your share count and demonstrate the company's strong financial position.
About Author
Upstox Desk
Upstox Desk
Team of expert writers dedicated to providing insightful and comprehensive coverage on stock markets, economic trends, commodities, business developments, and personal finance. With a passion for delivering valuable information, the team strives to keep readers informed about the latest trends and developments in the financial world.
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