NSE sets November 2 as record date for 4:1 bonus issue; check details

The National Stock Exchange of India Ltd (NSE) has fixed November 2, 2024, as the record date for its 4:1 bonus issue, according to a report.

A CNBC-TV18 report said the record date for the bonus issue was fixed at the exchange's board meeting on Tuesday, September 17. Notably, NSE shares are not listed on exchanges.

Earlier this year, on May 3, the exchange had announced a 4:1 bonus issue. This meant that four new fully paid-up equity shares of ₹1 each would be issued for every one existing fully paid-up equity share of ₹1 each held by eligible shareholders as of the record date.

The exchange planned to issue 1.98 billion equity shares as bonus shares, which would increase its share capital from the current ₹49.50 crore to ₹247.5 crore.

Last week, reports had emerged that market regulator Securities and Exchange Board of India (Sebi) had approved amendments to NSE’s memorandum of association, allowing a 10-fold increase in its authorised share capital to ₹500 crore.

The move not only paved the way for NSE’s bonus issue but also created the opportunity for the exchange to issue fresh shares during its proposed initial public offering (IPO).

NSE was also in the news last week after Sebi dismissed the co-location case against the exchange, citing the absence of adequate material proof. The case pertained to allegations that NSE officials allowed certain brokers to access its servers and data faster, which gave them an advantage over other traders.

Experts believe that the NSE may now kick-start the IPO process again, as the pending co-location case was seen as a major roadblock in getting the regulator’s go-ahead for launching the issue.