Bonus Issue

Others 528 views 1 replies

Please let me know whether a company can issue bonus shares out of "Capital Reserves" which are not ear-marked for any specific purpose.

Replies (1)

Dear Rakesh,

Bonus issue is the capitalization of the accumulated profits of the company. It can only be issued only from the free reserves of the company. If it is distributable to the shareholders then bonus shares can be issued using it.


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