New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following statement is true in case of

    bonus issue?
    A Bonus shares may be issued to convertible debenture holders at the time of conversion of such debentures into shares. Correct Answer Incorrect Answer
    B Convertible debenture holders will get bonus shares in same proportion as to the existing shareholders. Correct Answer Incorrect Answer
    C Both (a) and (b). Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

    Explanation: Convertible debenture holders are not shareholders until they convert their debentures into shares. Bonus shares can only be issued to shareholders. Hence, statement (a) is incorrect. Statement (b) is correct.

    Practice Next