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Tuesday, August 18, 2009

Bonus Issue and Revaluation Reserve

An unlisted public company or a private limited company can issue bonus shares even out of its revaluation reserve [SC in Bhagwati Developers vs. Peerless General Finance & Investment Company (2005)]

2 comments:

  1. Sir, How can bonus shares be issued by capitalising unrealised gains?

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  2. Bonus Shares are also unrealised but fully paid up. For Listed Companies, SEBI Guidelines are applicable. Revaluation Reserves basic prohibition is to utilise the same for Dividend Distribution

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