Market regulator Securities and Exchange Board of India (Sebi) has reduced the time taken for credit of bonus shares and their eligibility for trading to two days from the record date.In a circular issued on Monday, Sebi enabled T+2 trading of the bonus issue which means that the shares allotted in the bonus issue will now be available for trading on the next working date of allotment.Record date is the cut-off date for shareholders to be eligible for a bonus issue.The circular will be applicable to all bonus issues announced after October 1, 2024.The move is with an aim to streamline the process of bonus issue of equity shares, the circular said, adding that any delay in compliance with the stipulated timelines will attract penalties. Sebi has also laid operational procedures to implement the same. As per the new norms, the company proposing a bonus issue should apply for the in-principle approval to the stock exchange within 5 working days from the date of board meeting approving the bonus issue.The issuer while fixing and intimating the record date (T day) to the stock exchange will also have to take on record deemed date of allotment on next working date of record date (T+1 day).Upon receipt of intimation of the record date (T Day) and requisite documents from the issuer, the stock exchange should issue notification accepting the record date and notifying the number of shares considered in the bonus issue. The notification should also include the deemed date of allotment.Following this, the issuer company will have to ensure submission of the requisite documents to depositories for credit of bonus shares in the depository system latest by 12 pm of the next working day of the record date.The issuer will be required to upload the distinctive number (DN) ranges in the DN database of the depository and stock exchange(s) will have to ensure updation of relevant dates before credit of bonus shares.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)