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What is a 'No Delivery' (Or Book closer) period while processing bonus shares?

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When company decide for bonus shares it announces the record date and inform the same to stock exchanges where the stock of the company is listed.

To ensure the adequate entitlement for the bonus shares, stock exchanges then decide the ‘No Delivery' period for the stock. Stocks can be traded in this period but trades are only settled after the ‘No Delivery' period. Pay-out date for these settlement falls just after the end of the ‘No Delivery' period.

The start of ‘No Delivery' date is also known as 'Ex Date' for the settlement. The buyer of the shares on or after the ex-date's are not be eligible for the bonus shares while the seller are eligible for the same.

Example:
Reliance Power limited declared following dates for its bonus shares in year 2008:

  • Bonus share ratio: 3:5, 3 Bonus shares for every 5 shares hold by investors.
  • Record date: Monday, June 02, 2008
  • Book remains close to process bonus share: From Tuesday, June 03, 2008 to Thursday June 05, 2008.
  • Trading date for cum-bonus shares: Thursday, May 29, 2008.
  • Trading date for ex-bonus shares: Friday, May 30, 2008.
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4 Comments

4. Keshav Jumrani  Jan 18, 2018 14:14 I Like It. | Report Abuse Reply
I could not participate in the open offer for purchase of shares of Mac her name was not yet the scrips) and I could not trace out the share certificates as these were misplaced. Now the share is not traded on BSE Stock Exchange. Now whether I loose my entire holdings, whether the stock has been delisted, how can now I sell these shares? Please reply to these queries. I shall be thankful. Jumrani
3. vinuta  Apr 22, 2016 19:50 I Like It. | Report Abuse Reply
i placed order sale order of suzlon shares in cash on 21st april after trading hours . next day i sold them at different rate. now some amount is showing as pending purchase . it has been deduted from my funds. what should i do
2. prakash  Dec 24, 2009 10:05 I Like It. | Report Abuse Reply
i purchased zandu on 22 dec. in pull account.
what will happened.
1. geeta  Jan 14, 2009 13:21 I Like It. | Report Abuse Reply
1.purchase during no delivery period when the settlement of funds & securities are settled.

2.During no delivery period Fresh purchase shares or shares receiving through scheme in both of these which one is settled first