Description

Hari Govind International Ltd (scrip code: 531971) has signed agreements with depositories, enabling demat settlement. The scrip will move from P group to XT group with trade-to-trade settlement effective October 16, 2025.

Summary

BSE has announced that Hari Govind International Ltd (scrip code: 531971) has signed agreements with both depositories (NSDL and CDSL), enabling compulsory dematerialised settlement of trades. Effective October 16, 2025 (Settlement No. DR-737/2025-2026), the scrip will be moved from P group to XT group with trade-to-trade settlement, and the market lot will be revised from 100 shares to 1 share.

Key Points

  • Scrip will move from P group to XT group effective October 16, 2025
  • Market lot revised from 100 equity shares to 1 equity share
  • Trade-to-trade segment with compulsory demat settlement
  • No netting allowed in the scrip
  • Shortages will be directly closed-out
  • ISIN remains unchanged: INE167F01018
  • Settlement number: DR-737/2025-2026

Regulatory Changes

Group Migration: The scrip transitions from P group to XT group (Trade-to-Trade segment) for reasons other than non-signing of depository agreements.

Market Lot Revision: The trading lot size is reduced from 100 shares to 1 share, allowing smaller transaction sizes and improved accessibility.

Settlement Mechanism: All trades must be settled in compulsory dematerialised form through depositories.

Compliance Requirements

For Trading Members:

  • Execute all trades in market lot of 1 equity share
  • Ensure settlement in compulsory demat form only
  • No netting of positions permitted
  • Physical delivery not allowed
  • Shortages will be subject to direct close-out without alternative settlement options

For Investors:

  • Must hold shares in demat form to trade
  • Physical share certificates cannot be delivered for settlement

Important Dates

  • Effective Date: Thursday, October 16, 2025
  • Settlement Number: DR-737/2025-2026
  • Notice Date: October 15, 2025

Impact Assessment

Positive Impacts:

  • Enables demat trading and settlement, bringing the scrip in line with modern trading practices
  • Reduced market lot size (100 to 1) improves accessibility for small investors
  • Eliminates risks associated with physical share certificates

Trading Restrictions:

  • Trade-to-trade settlement increases transaction costs as positions cannot be netted
  • XT group classification may reduce liquidity and trading interest
  • Direct close-out of shortages increases risk for sellers
  • More restrictive trading environment compared to regular segment

Operational Impact:

  • Trading members must update systems for new market lot and group classification
  • Investors holding physical shares must dematerialise to continue trading
  • Settlement cycles will follow compulsory demat procedures

Impact Justification

Company signing depository agreements enables demat trading but moves to restrictive XT group with trade-to-trade settlement, affecting trading flexibility for this specific scrip.