Bonus Shares Query – Are they counter-productive to investors in short term?

Hello,

I’m making an attempt to grasp the implications of Bonus Shares. My question refers back to the following Zerodha Varsity article.Zerodha Varsity – How are dividends, bonuses, splits, buy-backs and mergers of shares taxed.

In accordance with the article the COA of Bonus Shares is taken into account to be Rs. 0 & DOA is the date of difficulty of the bonus shares. My question is as follows.

Let’s imagine, I maintain 100 shares (long run) of ABC firm with present share value of Rs. 2000. I’m considering of promoting all of them quickly. If I do, then my capital achieve could be Rs. 2 Lacs & it could fall underneath LTCG. Nevertheless, let’s imagine, in the meanwhile, the corporate declares 1:1 bonus shares & accordingly I get 100 extra shares, however, now the share value is adjusted accordingly & it turns into Rs. 1000 per share. I promote all of the shares. My achieve is Rs. 2 Lacs. Nevertheless, now solely Rs. 1 Lac is LTCG & the remaining Rs. 1 Lac is STCG!

1.) Is the above assumption right?

2.) Whether it is right, then it means there is no such thing as a fast advantage of Bonus Shares for the investor. The truth is, it’s counter-productive & disadvantageous within the brief time period as now he/she is locked in for an extra 12 months with the intention to re-enter LTCG. For instance, in my instance above with the intention to achieve Rs. 2 lacs as LTCG I’m locked in for additional 12 months until the share value doubles instantly, which is extremely unbelievable.

Thanks!