Description

RISHAB SPECIAL YARNS LIMITED (scrip code: 514177) has signed agreements with both depositories, enabling compulsory demat settlement and migration from Group P to Group X effective November 14, 2025.

Summary

RISHAB SPECIAL YARNS LIMITED (scrip code: 514177) has completed signing agreements with both depositories (NSDL and CDSL), enabling the company to migrate from Group P to Group X. Effective from Friday, November 14, 2025 (Settlement No. DR-756/2025-2026), all trades in this scrip will be settled in compulsory dematerialised form with revised trading parameters.

Key Points

  • Company migrating from Group P to Group X
  • Market lot revised from 100 shares to 1 share
  • Compulsory demat settlement becomes mandatory
  • Scrip to be traded in Normal Rolling Segment
  • Netting allowed in the scrip
  • Shortages will be auctioned
  • ISIN remains unchanged: INE351D01013

Regulatory Changes

  • Group Classification: Migration from Group P (physical settlement allowed) to Group X (compulsory demat settlement)
  • Market Lot: Reduced from 100 equity shares to 1 equity share per lot
  • Settlement Mode: All trades must be settled in dematerialised form only (physical certificates not accepted)
  • Trading Segment: Scrip will trade in Normal Rolling Segment with standard T+2 settlement cycle

Compliance Requirements

  • Trading members must ensure all trades in scrip code 514177 are settled in demat form only
  • Investors holding physical shares must convert them to demat form to trade
  • Trading systems must be updated to reflect new market lot of 1 share
  • Members must update client records regarding the group migration
  • Auction mechanism to be applied for settlement shortages

Important Dates

  • Effective Date: Friday, November 14, 2025
  • Settlement Number: DR-756/2025-2026
  • Notice Date: November 13, 2025

Impact Assessment

Operational Impact: The migration to Group X eliminates physical settlement, requiring all shareholders to dematerialize their holdings to participate in trading. The market lot reduction from 100 to 1 share significantly lowers the minimum investment requirement, potentially improving liquidity and accessibility for retail investors.

Trading Impact: The change to single-share market lots allows more precise position management and reduces capital requirements for market entry. Netting permissions and auction mechanisms for shortages provide standard settlement safeguards.

Investor Impact: Existing physical shareholders must convert to demat to sell their holdings. The unchanged ISIN (INE351D01013) ensures continuity in demat holdings without requiring any transfer or conversion by demat shareholders.

Impact Justification

Group migration from P to X with compulsory demat settlement and market lot change from 100 to 1 share impacts trading mechanics for this specific scrip. Medium importance as it affects only one stock with likely low trading volumes.