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The company announces bonus shares when it decides to issue them. It also informs stock exchanges that the stock is listed.
Stock exchanges determine the stock's 'No Delivery Period' to ensure that the bonus shares are received as soon as possible. Stocks can still be traded during this period, but trades must be settled after the 'No delivery' period. These settlements will be paid out after the expiration of the "No Delivery" period.
The settlement begins at the 'No Delivery' date. This is also called'Ex Date'. The bonus shares are not available to the buyer of shares that are purchased after the ex-dates. However, the seller is eligible.
Exemple:
Reliance Power Limited declared the following dates for its 2008 bonus shares: