The study looked at how bonus share announcements affect stock prices. Despite theory suggesting no impact, some research shows these announcements do affect prices. 33 out of 44 companies met the study's criteria. The Indian market showed semi-strong efficiency in the long term, but investors could make above-average profits in the short term. Bonus share information was fully absorbed within 31 days. There was a negative correlation between pre-announcement and post-announcement returns. Pre-event periods saw positive returns, while post-event periods saw negative returns. On the event day, stocks did not show abnormal returns compared to the market.