Why do bonus shares appear as a separate entry in the portfolio or transaction statement?

Why do bonus shares appear as a separate entry in the portfolio or transaction statement? 

Bonus shares are credited through a corporate action and not through a market purchase. Therefore, they are recorded as a separate corporate action entry in the client's portfolio and transaction statement, while the original purchase transaction remains unchanged. 

Example: 

  • If a client holds 100 shares and the company announces a 1:1 bonus issue, an additional 100 bonus shares are credited to the client's Demat account. The original 100 shares continue to be displayed under the original purchase transaction, and the additional 100 bonus shares are reflected as a separate corporate action entry. 

Note: The separate entry is created for accounting and reporting purposes. It does not represent a new purchase, a separate investment, or an additional cash outflow by the client. 

View Corporate Action Details → 

Understand why bonus shares are shown as a separate corporate action entry while the original purchase transaction remains unchanged.  


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