Bonus Shares: SBC Exports Ltd has stated that its board has approved the issue of bonus shares. However, the bonus issue of equity shares is subject to the approval of the shareholders. 

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According to a regulatory filing, the company - one of the leading exporters of handmade Indian Carpets in wool and silk -  will issue bonus shares in the ratio of 1:2 i.e., one equity share for every 2 equity shares held by the existing equity shareholder of the company as on record date. The company has yet to fix the record date. 

"...considered, recommended and approved the Issue of Bonus Shares in the ratio of 1:2 i.e., 1 Equity Share for every 2 equity shares held by the existing equity shareholder of the Company as on Record Date to be fixed in the meantime," the filing reads.

Bonus shares are simply extra shares of a company given to existing shareholders at no cost. Issuing bonus shares increases the total number of outstanding shares in the company, thereby enhancing liquidity in the market.