I wanted to understand about the bonus shares

I bought 72 shares of Kansai Nerolac paints on 3rd June, a day before stock turned into ex-bonus (Record date is 4th July). On july 4th the stock has turned into ex-bonus (1:2) ratio, the price of a stock is reduced from 460 to 306. But in portfolio still it showing 72 shares and a loss of 10k+. Can any one please let me know how this settlement works? When the bonus shares will be credited and at what price?

Hi @Lokesh_G - I am not sure about the date but bonus shares will be credited to your dmat account typically after some days and cost price of those stocks will be zero.

So whenever you will see those stocks in your account your average price would reflect accordingly.

As an example lets say you bought share of “ABC” at 300 and it gave a bonus of 1:1. Lets say price fell today to 200 but when the stock will be credited to your account the average price of 2 stocks will be 150 and your account will show profit/loss accordingly. Hope this helps.