Description

Hari Govind International Ltd (scrip code: 531971) has signed agreements with both depositories. Trading shifts to XT group with compulsory demat settlement effective October 16, 2025.

Summary

Hari Govind International Ltd (scrip code: 531971) has completed signing agreements with both depositories (NSDL and CDSL). Effective October 16, 2025 (Settlement No. DR-737/2025-2026), the scrip will move from P group to XT group with revised trading parameters including market lot reduction from 100 to 1 share and mandatory dematerialised settlement.

Key Points

  • Scrip moves from P group to XT group (Trade to Trade segment)
  • Market lot revised from 100 shares to 1 share
  • All trades must be settled in compulsory demat form
  • Netting will not be allowed in the scrip
  • Shortages will be directly closed-out
  • ISIN remains unchanged: INE167F01018
  • Trade to Trade classification is for reasons other than non-signing of depository agreements

Regulatory Changes

Group Classification Change:

  • Previous: P Group with market lot of 100 shares
  • New: XT Group (Trade to Trade) with market lot of 1 share

Settlement Requirements:

  • Compulsory dematerialised settlement now mandatory
  • No netting allowed for the scrip
  • Direct close-out mechanism for shortages

Compliance Requirements

For Trading Members:

  • Update systems to reflect new market lot of 1 share
  • Ensure all trades in scrip 531971 are settled in demat form only
  • No physical settlement will be permitted
  • Account for Trade to Trade segment restrictions (no intraday squaring off)
  • Prepare for direct close-out procedures in case of delivery shortages

For Investors:

  • Must hold shares in dematerialised form for trading
  • Each share can be traded individually (lot size = 1)
  • No netting facility available

Important Dates

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

Impact Assessment

Trading Impact:

  • Increased flexibility with market lot of 1 share allows smaller investment amounts
  • Trade to Trade segment restricts intraday trading opportunities
  • No netting may increase settlement obligations for traders

Operational Impact:

  • Trading members must update trading systems for new lot size
  • Settlement processes must ensure 100% demat delivery
  • Risk management systems should account for direct close-out mechanism

Market Impact:

  • Limited to specific scrip (531971) - minimal broader market impact
  • Enhanced transparency through compulsory demat settlement
  • Reduced liquidity risk with direct close-out for shortages

Impact Justification

Group migration from P to XT with compulsory demat settlement affects trading mechanics for this specific scrip, requiring traders to adjust lot sizes and settlement procedures