According to the Notification dated 23.05.2019 passed by the Bangladesh Securities and Exchange Commission, no listed company is allowed to declare bonus shares unless justified reasons are provided. Thus, in case of declaration of bonus shares, the company has to disclose the Price Sensitive Information (PSI) which should include:
a. the reasons for declaration of bonus shares and utilization of such retained amount as capital;
b. the bonus share is declared out of accumulated profit or share premium;
c. the bonus share is not declared from capital reserve or unrealized gain or out of profit earned prior to incorporation of the company, etc.
