Description

BSE announces trading period for rights entitlements (REs) of Davangere Sugar Company Limited from August 14-25, 2025, with rights issue opening August 14-29, 2025.

Summary

BSE has announced the commencement of trading in Rights Entitlements (REs) for renunciation of Davangere Sugar Company Limited. Trading will be permitted from August 14, 2025 to August 25, 2025, with the underlying Rights Issue opening from August 14, 2025 to August 29, 2025.

Key Points

  • Rights Entitlements trading period: August 14-25, 2025
  • Rights Issue period: August 14-29, 2025
  • Scrip Code: 751024, Scrip ID: DAVAN-RE1
  • ISIN: INE179G20029
  • Market Lot: 1, Group: R
  • Settlement: T+1 Rolling Settlement basis, trade-for-trade
  • Trading only in dematerialized form

Regulatory Changes

No new regulatory changes introduced. This circular follows existing framework for rights entitlements trading as established in previous notices from March 2020 and May 2020.

Compliance Requirements

  • Trading members must inform all clients about REs trading commencement
  • Must specify ISIN of RE and clarify these are not ordinary shares
  • Contract notes must include disclaimer about REs purchase rights
  • Must inform clients that REs give right to participate in rights issue or renounce before closure
  • REs not subscribed or renounced by issue closing date will lapse and be extinguished

Important Dates

  • August 14, 2025: Rights Entitlements trading begins, Rights Issue opens
  • August 25, 2025: Rights Entitlements trading ends
  • August 29, 2025: Rights Issue closes
  • Settlement: T+1 Rolling Settlement basis

Impact Assessment

Medium impact on Davangere Sugar Company shareholders who can trade their rights entitlements during the specified period. Trading members need to ensure proper client communication and compliance with disclaimer requirements. The trade-for-trade settlement basis may affect liquidity but ensures proper settlement of these time-limited instruments.

Impact Justification

Standard rights entitlement trading announcement affecting single company's shareholders and trading members