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Bonus, Split, Buyback and Rights Issue: How Each Works

Ram Das · Content Strategist
Published · 3 min read

In short

  • Several companies have record dates in November 2026, with Concord Biotech having the only bonus record date of the month, as per IndiaIPO.
  • Bonus issues and splits increase the number of shares in a demat account, but the total value of the holding remains unchanged.
  • FDC has announced a buyback at Rs 500 per share, and a buyer must purchase the shares by 12 November to be eligible.
  • Open-market buybacks through the exchanges returned from 1 August 2026, and the proceeds are taxed as capital gains in the hands of shareholders.
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Individuals who follow corporate actions will find a crowded record-date run in November 2026, and the bonus split buyback rights issue difference is visible across several companies on the calendar. Concord Biotech has its 1:1 bonus record date on 4 November and IndiaIPO, quoting data as of 1 November, reports that it is the only company with a bonus record date in November 2026.

Gujarat Natural Resources follows on 5 November, when the record date for the split of its shares from a face value of Rs 10 to Re 1 will fall. Knowledge Marine & Engineering has its record date on 6 November for a split from Rs 5 to Re 1, as per IndiaIPO.

The buyback calendar is led by FDC which announced on 27 October that it will buy back shares at Rs 500 per share, as per Watch. The record date is 13 November, so 12 November will be the last day on which a buyer can purchase the shares and still be eligible.

Medi Assist Healthcare Services has its buyback record date on 20 November, IndiaIPO says. Interarch Building Solutions will conclude the month with a 1:5 split, reducing the face value of its shares from Rs 10 to Rs 2, with a record date of 30 November, as per Goodreturns.

What each action does to a holding

A bonus and a split both increase the number of shares held by an investor, and market price is adjusted at the same time, so the total value of the holding does not change on account of the action. For a Concord Biotech shareholder holding 100 shares, there will be 200 shares after the bonus, with the price adjusted to half of the earlier level.

In the case of Interarch Building Solutions, a shareholder holding 100 shares will have 500 shares after the split, as the face value is divided into five parts and the price is adjusted to one fifth. The higher share count visible in the will not add anything to the value held.

A buyback works in a different manner. The company offers to purchase shares from the shareholders at a price stated in advance, and the shareholders who tender their shares receive cash, so the number of shares they hold is reduced.

A rights issue offers new shares to the existing shareholders, and the money paid for those shares goes to the company.

Preferential allotments, in which shares are issued to selected investors, raised a larger amount in the same year.

Buyback rules, tax and the ex-date

The ex-date is the day from which a stock starts trading without the entitlement to the , rights, bonus or buyback, as per a Business Standard explainer. Eligibility is based on the holders on the record date, so an investor buying on or after the ex-date does not receive the benefit.

Open-market buybacks through the stock exchanges had been suspended from 1 April 2025 and they returned on 1 August 2026, as per Mondaq. Sansa Legal reports that had notified the amendment regulations for this purpose earlier, in July.

Mondaq, citing Sagus Legal, says an open-market buyback is now capped below 15% of paid up capital plus free reserves, and the limit is tested on both standalone and consolidated financials. The buyback must open within 4 working days of the public announcement and close within 66 working days of opening.

Shares held by the promoters and their associates are frozen from board approval until the buyback closes, unless the promoters tender in a tender offer, Whalesbook reports. Outlook Money adds that a merchant banker is no longer mandatory, and a company cannot announce a buyback if it would breach the minimum public shareholding limit.

On tax, buyback proceeds are taxed as capital gains in the shareholder's hands from 1 April 2026, with the cost of acquisition allowed, as per Mondaq.

The Medi Assist record date, which follows the FDC date, is the next buyback date to watch.

bonus sharesstock splitshare buybackrights issuerecord dateex-dateNovember 2026 corporate actionsbuyback taxSEBI buyback rules

Frequently asked questions

What is the difference between a bonus issue and a stock split?

In a bonus issue, the company gives additional shares to shareholders from its reserves. In a split, the face value of each share is divided into smaller parts.

How is a buyback different from a rights issue?

In a buyback, company purchases shares and pays cash to the shareholders. In a rights issue, the shareholders pay money to the company for new shares.

Is tax charged on bonus or split shares?

No tax is charged when the shares are credited. Tax applies at the time of sale, and the cost of bonus shares is taken as nil.

What is the ex-date in a corporate action?

The ex-date is the day from which a stock starts trading without the entitlement to the dividend, rights, bonus or buyback. Eligibility is based on the holders on the record date, so an investor buying on or after the ex-date does not receive the benefit.

What are the limits for an open-market buyback after the amendment by SEBI?

An open-market buyback is capped below 15% of paid up capital plus free reserves, and the limit is tested on both standalone and consolidated financials. The buyback must open within 4 working days of the public announcement and close within 66 working days of opening.

Sources & credits

Facts and figures in this article draw on these sources. All writing is our own.

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About the author

Ram Das

Ram Das

Content Strategist Noida, India

A writer with a keen interest in the economy, financial markets and personal finance, bringing a grassroots perspective to stories that affect everyday people.

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