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BSE Announces Bonus Share Issue, See How It Will Benefit Shareholders

This is the second time since its 2017 listing that the BSE has decided to issue bonus shares. The last time was in 2022, when the exchange also offered bonus shares in the same 2:1 ratio.

BSE Limited on Sunday announced a 2:1 bonus share issue, meaning shareholders will receive two free shares for every one they currently hold.

The company’s board approved the decision in a meeting, however, the record date for the bonus issue will be announced later.

This is the second time since its 2017 listing that the BSE has decided to issue bonus shares. The last time was in 2022, when the exchange also offered bonus shares in the same 2:1 ratio.

Investors who hold BSE shares before the ex-date will be eligible for the bonus issue. Bonus shares are given to existing shareholders at no extra cost and are usually issued to capitalise on free reserves and increase the company’s paid-up capital while reducing its reserves.

The BSE has a history of rewarding its shareholders. Since going public, it has paid over Rs 170 per share in dividends and conducted two share buybacks, one in 2019 and another in 2023.

BSE Limited shares surged 16.09 per cent on Friday, closing at Rs 5,438. However, the stock has remained largely flat in 2025 so far.

The surge in share price followed a proposal from the Securities and Exchange Board of India (SEBI) to standardise expiry days for equity derivatives across stock exchanges.

This surge helped the stock cross its 200-day moving average. The SEBI has suggested that all exchanges should choose either Tuesday or Thursday as the expiry day for derivatives contracts, including stock and index options and futures.

The move is expected to bring predictability for traders, reduce concentration risk, and improve market stability.

Also Read : Domestic Stainless Steel Industry Set For Volatile Q1FY26, As Surge In Imports Causes Concerns: ISSDA

According to analysts at Jefferies, the proposal could benefit the BSE. If the NSE reverts to Thursday expiries while the BSE continues with Tuesday expiries, it may help the BSE maintain its market share.

Jefferies also estimated that the impact on BSE’s earnings per share (EPS) would be around 12 per cent, which is lower than earlier concerns.

However, analysts still see some uncertainty regarding open interest limits. Despite a 3 per cent decline since the start of the year, the BSE’s stock has gained 104 per cent over the past year.

(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)

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