The “guidelines regarding the issue of bonus shares” prescribed by

SEBI, must be complied with. It is worth noting that SEBI guidelines are to be complied with by listed public companies only. Unlisted public companies or

private companies need not comply with SEBI guidelines.

A listed public company intending to issue bonus shares has to inform the stock exchange in advance, if proposal to issue bonus shares is communicated

to the Board of Directors of the company as agenda papers. Otherwise advance.intimation to stock exchange is not required [SEBI circular dated

14.2.2000]

SEBI Guidelines 011 Issue of Bonus Shares (issued on 19.1.2000]. SEBI guidelines dated 19.1.2000 (which are similar to earlier guidelines dated