Bonus issue conditions require authorisation and absence of payment defaults before issuing bonus shares. Regulation 92 conditions a listed issuer's ability to issue bonus shares on (1) authorisation in its articles of association or a general meeting resolution to capitalise reserves, (2) absence of defaults in payment of interest or principal on fixed deposits or debt securities, (3) reasonable belief of no default in statutory employee dues such as provident fund, gratuity and bonus, and (4) making any partly paid shares fully paid up prior to allotment.