The National Stock Exchange (NSE) has officially set November 2, 2024, as the record date for its previously declared 4:1 bonus share issue. This announcement follows the NSE board’s confirmation and aligns with the bonus share issuance plan first unveiled in May. Shareholders recorded as of this date will receive four bonus shares for each share they currently hold.
Details of the NSE Bonus Share Issuance
In a notice released on September 17, the National Stock Exchange board confirmed the record date for its bonus share issue. Shareholders as of November 2, 2024, will be eligible for the bonus shares as part of the National Stock Exchange effort to reward its existing shareholders. The board had approved this bonus share issue earlier in the year, which entitles shareholders to receive four new shares for every single share they hold.
The NSE, a private entity not publicly listed, remains a significant player in the financial sector. The bonus shares will be distributed to equity shareholders whose names are listed in the Register of Members/Beneficial Owners as of the record date. This process ensures that only those shareholders on record by November 2 will benefit from the bonus issue.
Additionally, the National Stock Exchange has announced that its register of members and share transfer books will be closed from October 4 to November 2, 2024. During this closure period, no new share transfer applications will be processed. Transfer applications that are submitted with all required documents before the closure will be addressed, while those received during this period will not be accepted.
NSE Regulatory Updates and Historical Context
On September 13, the market regulator concluded its proceedings against the NSE and several former officials, including Ravi Narain, Chitra Ramkrishna, and Anand Subramanian. These proceedings were related to the NSE’s co-location services, which had been under scrutiny.
Ravi Narain served as the Managing Director (MD) and Chief Executive Officer (CEO) of the National Stock Exchange from 2000 to March 2013. Chitra Ramkrishna took over as MD and CEO from April 2013 until December 2016. Anand Subramanian was the Chief Strategic Officer from April 2013 to March 2014. The recent regulatory order effectively closes the proceedings against both the NSE and the individuals involved.
These proceedings were initiated following an order from the Securities Appellate Tribunal (SAT), which had reviewed appeals from the NSE, its employees, broker OPG Securities, and other parties involved. The resolution of these proceedings marks a significant moment for the National Stock Exchange as it continues to navigate regulatory and operational challenges.
In summary, the NSE’s announcement of November 2 as the record date for its bonus share issue is a key development for its shareholders. The bonus shares, distributed at a ratio of 4:1, reflect the NSE’s ongoing efforts to reward its investors. The closure of the share transfer books and the conclusion of regulatory proceedings further highlight the exchange’s commitment to maintaining operational integrity and shareholder value.
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