Nykaa, Easemytrip bonus shares' issue under Sebi scanner: Report

The Securities and Exchange Board of India (SEBI) may ask companies to allot bonus and split shares to shareholders within a defined period of time, said a report on Thursday.

The Moneycontrol report comes at a time when Nykaa issued bonus shares ahead of the end of lock-in period for pre-IPO investors to avoid a fall in share price that the new age tech firms witnessed in the recent past. 

Easemytrip's board had approved and declared bonus shares in 3:1 ratio along with stock split in the ratio of 1:2, which led to 40% rise in share price in no time (from Rs 48 to Rs 68).

Market players say that some promoters, in collusion with operators, rig the stock price during the window between the record date and the date on which the shares are allotted, the news portal published.

Shares of FSN E-Commerce Ventures (Nykaa) saw a dozen block deals on Tuesday, with Société Générale, BofA Securities, Morgan Stanley, Aditya Birla SL MF, ICICI Prudential Mutual Fund emerging as key buyers.

Separately, FSN E-Commerce Ventures, which operates under the Nykaa brand name, on Tuesday said its chief financial officer Arvind Agarwal has resigned from the company.

Agarwal joined Nykaa from Amazon in July 2020 and is among key managerial personnel (KMP) who handled the initial public offer of the firm.