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)]
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
Sir, How can bonus shares be issued by capitalising unrealised gains?
ReplyDeleteBonus 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
ReplyDelete