JASDEC announced they have put together their plan on changing the effective date of bonus issues to the next business days of the record date in their working group meeting.
The measure will be realized for the bonus issues, and the effective date of which falls on or after 4. Jan. 2006, BTM said in a news flash.
Current effective date of a bonus issue is about 50 days after the record date. For this reason, there have been criticisms and concerns regarding the liquidity of relevant shares and distortion of the market price during the period of 50 days.
After the change, the shares newly issued at bonus issue will become tradable at JASDEC on the next day of the record date, and accordingly, the ‘when-issue-trade’ are also planned to be abolished.