Description
Trading in Rights Entitlements (REs) for renunciation of Utkarsh Small Finance Bank Limited will commence from October 24, 2025 to October 28, 2025, with the rights issue opening from October 24, 2025 to November 03, 2025.
Summary
BSE has announced that trading in Rights Entitlements (REs) for renunciation of Utkarsh Small Finance Bank Limited will be permitted on the Exchange from Friday, October 24, 2025. The REs trading period runs from October 24, 2025 to October 28, 2025, while the Rights Issue itself will remain open from October 24, 2025 to November 03, 2025. The REs will be settled on T+1 rolling settlement basis and traded on a trade-for-trade basis in dematerialized form only.
Key Points
- Rights Entitlements trading permitted from October 24, 2025
- REs renunciation trading period: October 24, 2025 to 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 settlement applicable
- REs tradable in dematerialized form only
- Un-renounced and unsubscribed REs will lapse after issue closing date
Regulatory Changes
No new regulatory changes. This circular follows existing framework for Rights Entitlements trading as outlined in 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 trading in REs with the ISIN number
- Trading Members must clarify that REs should not be mistaken for ordinary shares
- Contract notes/bills for RE purchases must include a prominent disclaimer informing clients that:
- Purchase of REs only provides right to participate in the ongoing Rights Issue by making application with requisite money, or to renounce the REs before issue closes
- REs which are neither subscribed nor renounced on or before Issue Closing Date shall lapse and be extinguished
- Trading Members must refer to notice numbers 20200305-21 (March 05, 2020) and 20200518-34 (May 18, 2020) for additional details
Important Dates
- October 20, 2025: Notice date
- October 24, 2025: REs trading commences; Rights Issue opens
- October 24-28, 2025: Trading period for renunciation of Rights Entitlements
- November 03, 2025: Rights Issue closes
- REs not subscribed or renounced will lapse after November 03, 2025
Impact Assessment
Market Impact: Medium - This affects existing shareholders of Utkarsh Small Finance Bank who hold rights entitlements. The 5-day trading window for renunciation provides liquidity for shareholders who do not wish to subscribe to the rights issue.
Operational Impact: Trading members need to ensure proper client communication and include mandatory disclaimers in contract notes. The T+1 settlement and trade-for-trade mechanism requires appropriate operational readiness.
Investor Impact: Shareholders must decide within the specified timeframe whether to subscribe to the rights issue, renounce their rights (sell REs), or allow them to lapse. Un-actioned REs will be extinguished after the issue closing date, resulting in potential dilution for non-participating shareholders.
Impact Justification
Standard rights issue notification affecting shareholders of Utkarsh Small Finance Bank with specific trading window for renunciation rights