InvestorQ : I am holding shares in demat form. Will my bonus shares be issued in demat form or in physical form? Can I get bonus on physical shares in demat form?
Bhavik Nehru made post

I am holding shares in demat form. Will my bonus shares be issued in demat form or in physical form? Can I get bonus on physical shares in demat form?

Answer
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Anamika Sodhani answered.
2 years ago


That is an interesting question. If the holdings are in dematerialized form, will the bonuses/rights against them be issued in the same form?
The Issuer/RTA regularly obtains holdings report on ISIN balances from NSDL / CDSL. On the basis of holdings report, the Issuer/RTA issues advice for credit of bonus/rights shares in the demat accounts.
The Issuer/RTA may, if the benefits are being given in the form of securities, distribute such benefits to the investor through NSDL / CDSL by crediting them electronically to the BO account, provided that the newly created security is an eligible security and has been admitted into NSDL / CDSL.
Where allotment is made in the demat form, the Issuer or its RTA sends allotment advice directly to the BO. Securities credited directly to the BO account will be reflected in the statement issued by DPS. In case any security is not admitted with NSDL / CDSL system, the Issuer/ RTA will distribute the corporate benefits in the physical form What if you are holding shares in physical form but want bonus in demat? Is that possible? If the holding is in physical form, the BO can choose to receive the rights/ bonus allotment in the dematerialized form if he informs his intent to receive the rights/bonus in dematerialized form to the Issuer/RTA.