BSE Declares 2:1 Bonus Share Issue, Its Second Since Listing

BSE Limited has announced a 2:1 bonus issue of shares, issuing two new shares for each one they hold. The board of the company approved the move in a meeting on Sunday, although the official record date for the bonus issue will be announced later.

This is BSE's second bonus issue of shares since its initial listing in 2017, preceded by an equivalent 2:1 bonus issue in 2022. Investors who were the holders of BSE shares up to the ex-date will qualify for the award of such bonus shares without further cost. These issuances normally seek to leverage free reserves, raise paid-up capital, and lower cumulative reserves.

Year after year, BSE has returned its investors. Since it went public, the exchange has paid out more than ₹170 per share in dividends and conducted two share buybacks, one in 2019 and the other in 2023.

Stock Surges Amid SEBI Proposal
On Friday, BSE shares rose 16.09%, ending at ₹5,438. Nevertheless, the stock has been mostly flat in 2025. This price hike followed the proposal by the Securities and Exchange Board of India (SEBI) to standardize the expiry days of equity derivatives across stock exchanges.

Following the announcement, BSE’s stock crossed its 200-day moving average, signaling strong investor interest. SEBI’s proposal suggests that all stock exchanges should choose either Tuesday or Thursday as the expiry day for derivatives contracts, including options and futures.

Analysts are of the view that such a shift would improve market predictability, lower concentration risks, and increase overall stability. In a report by Jefferies, in case the NSE goes back to Thursday expiries while BSE maintains Tuesday expiries, it can possibly enable BSE to maintain its market share in derivatives trading.

Jefferies also approximated that although this regulatory adjustment may affect BSE's EPS by around 12%, the impact is less drastic than initially anticipated.

In spite of a 3% decrease so far in 2025, BSE shares have risen by 104% in the last year, echoing robust investor optimism.