What are the disadvantages of issuing bonus shares?

What are the disadvantages of issuing bonus shares?

The disadvantages of issuing bonus shares are:

1) To the company - as issue of this may lead to increase in capital of the company.
2) Shareholder expect existing rate dividend per share to continue.
3) It also prevents the new investors from becoming the shareholders of the company.
4) Shareholder preferring cash to stock dividend may be disappointed.
What are the advantages of issuing bonus shares to the shareholders and creditors?
The advantages of issuing bonus shares to the shareholders and creditors are as follows:-
What SEBI guidelines are to be followed for issue of bonus shares?
Securities and Exchange Board of India (SEBI) guidelines are to be followed for issue of bonus shares:-
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