Description
BSE announces trading in Rights Entitlements (REs) for renunciation of Utkarsh Small Finance Bank Limited from October 24-28, 2025, with rights issue opening October 24 to November 3, 2025.
Summary
BSE has announced that trading in Rights Entitlements (REs) for renunciation of Utkarsh Small Finance Bank Limited will commence on October 24, 2025. The REs will be tradable for renunciation from October 24-28, 2025, while the rights issue itself will remain open from October 24 to November 3, 2025. Trading will be conducted on a T+1 rolling settlement basis in demat form only, with trade-for-trade settlement.
Key Points
- Rights Entitlements trading permitted from Friday, October 24, 2025 to Tuesday, October 28, 2025
- Scrip Code: 751049, Scrip ID: UTKAR-RE, ISIN: INE735W20017
- Market lot: 1, Group: R
- Settlement on T+1 rolling settlement basis, trade-for-trade
- REs tradable in dematerialized form only
- Trading members must inform clients with proper disclaimers in contract notes
- REs neither subscribed nor renounced by issue closing date will lapse and be extinguished
Regulatory Changes
No new regulatory changes. This circular implements existing framework for rights entitlements trading as per previous notices (20200305-21 dated March 05, 2020 and 20200518-34 dated May 18, 2020).
Compliance Requirements
- Trading members must inform all clients about commencement of REs trading
- Must mention the ISIN (INE735W20017) and clarify REs are not ordinary shares
- Must include prominent disclaimer in contract notes/bills containing purchase of REs
- Disclaimer must inform clients that:
- Purchase of REs only gives right to participate in ongoing rights issue by making application with requisite money OR renounce the REs before issue closes
- REs neither subscribed nor renounced on or before issue closing date will lapse and be extinguished
- Trading members must refer to notice no. 20200305-21 and 20200518-34 for further details
Important Dates
- October 20, 2025: Notice date
- October 24, 2025: Rights Entitlements trading commences; Rights Issue opens
- October 24-28, 2025: Trading period for renunciation of Rights Entitlements
- November 3, 2025: Rights Issue closes
- After November 3, 2025: Unsubscribed/unrenounced REs will lapse and be extinguished
Impact Assessment
Market Impact: Medium - affects existing shareholders of Utkarsh Small Finance Bank who hold rights entitlements. Provides liquidity window for those who wish to renounce their rights instead of subscribing.
Operational Impact: Medium - trading members need to ensure proper client communication, contract note disclaimers, and settlement procedures are in place for the 5-day trading window. The T+1 settlement and trade-for-trade basis requires careful operational handling.
Investor Impact: Shareholders have the option to either subscribe to the rights issue, trade their rights entitlements during the renunciation period, or let them lapse. Time-sensitive decision required within the specified trading window.
Impact Justification
Medium importance as it affects shareholders of Utkarsh Small Finance Bank who may want to trade or renounce their rights entitlements during the specified period. Medium impact limited to this specific stock's rights issue participants.