Section 92 in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
92. Conditions for bonus issue.
- Subject to the provisions of the Companies Act, 1956 or any other applicable law for the time being in force, a listed issuer may issue bonus shares to its members if:(a)it is authorised by its articles of association for issue of bonus shares, capitalisation of reserves, etc.:Provided that if there is no such provision in the articles of association, the issuer shall pass a resolution at its general body meeting making provisions in the articles of associations for capitalisation of reserve;(b)it has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it;(c)it has sufficient reason to believe that it has not defaulted in respect of the payment of statutory dues of the employees such as contribution to provident fund, gratuity and bonus;(d)the partly paid shares, if any outstanding on the date of allotment, are made fully paid up
