BSE Stock Price Drop Explained: Bonus Issue, Not NSE-SEBI Feud Behind Sharp Fall

Why Did BSE's Stock Price Suddenly Plunge?

If you checked the BSE Ltd share price on May 23, 2025, you might have gasped. The stock, which previously hovered around ₹6,996.50, opened at roughly ₹2,358—a jaw-dropping drop of about 66%. On the surface, that kind of nosedive usually means panic or trouble. But this one was entirely by the book, triggered by a routine market event: a bonus issue.

Here’s what happened. BSE announced a 2:1 bonus issue, so for every share you held as of the record date (May 22, 2025), you got two extra shares for free. On May 23, which was the ex-bonus date, the stock price adjusted automatically to account for the leap in the number of shares. That’s how bonus issues work—instead of your portfolio value tripling, the price per share shrinks in proportion, while the total value and your percentage ownership stay put.

This adjustment can make things look dramatic, especially if you aren’t expecting it. But it doesn’t mean anything’s wrong with the company. The value of your investment (number of shares times the new price) should look pretty similar to what it was the day before. BSE’s move is all in line with the rules stock exchanges and regulators set for bonus issues. It’s the kind of technicality that can trip up casual investors or anyone just scanning headlines.

There's No Hidden Crisis—Just Market Rules in Action

The confusion got worse as some saw rumors tying the price fall to some dispute involving NSE and SEBI. But check the filings or company statements and you’ll find zilch—no regulatory drama was behind this. The only thing changing on BSE’s books was the conversion of reserves into share capital, not some fresh crisis.

If you bought BSE shares before the record date, congratulations—you just got more shares for nothing. If you bought later, you’re playing by the new price, and you won’t get the bonus. This is standard for bonus shares; the price gets divided by the bonus ratio, so your holdings are diluted in share count, but not value.

An interesting twist is that, despite the sudden “crash,” the BSE stock didn’t just flatline. After opening lower, it bounced back more than 5% intraday from its adjusted starting point. That shows investors understood the bonus issue, and those who saw opportunity jumped in at what looked like a value pick.

• The ex-bonus date was May 23, so that's when the price reset.
• The bonus ratio was 2:1, so your share count tripled if you held on record date.
• No evidence connects this price move to NSE-SEBI tensions or regulatory actions.

So while headlines of a 66% crash grab attention, all this action boils down to a perfectly normal market process—a sharp move on the screen that’s explained with a quick look behind the curtain.