Description

BSE circular announcing foreclosure periods for SLB securities undergoing corporate actions including Hindustan Unilever's spin-off, Patel Engineering's rights issue, and Engineers India's dividend.

Summary

BSE has announced foreclosure of Securities Lending and Borrowing (SLB) positions for three securities undergoing corporate actions. Hindustan Unilever Ltd is implementing a spin-off, Patel Engineering Ltd is conducting a rights issue, and Engineers India Ltd is distributing a dividend. Market participants with SLB positions in these securities must close their positions before the specified foreclosure dates.

Key Points

  • Three securities subject to SLB foreclosure due to corporate actions
  • Hindustan Unilever Ltd: Spin-off with ex-date December 5, 2025
  • Patel Engineering Ltd: Rights issue with ex-date December 4, 2025
  • Engineers India Ltd: Dividend with ex-date December 4, 2025
  • Shut periods commence one day before respective ex-dates
  • Foreclosure mandatory for all outstanding SLB positions

Regulatory Changes

No new regulatory changes. This circular enforces existing SLB framework requirements for securities undergoing corporate actions.

Compliance Requirements

  • SLB Participants: Must close all outstanding lending and borrowing positions in the affected securities before the foreclosure date
  • Brokers/Clearing Members: Ensure clients are informed about mandatory foreclosure requirements
  • Record Date Alignment: SLB positions must be squared off to ensure proper entitlement allocation for corporate action benefits

Important Dates

Hindustan Unilever Ltd (Spin-off)

  • Shut Period: December 4-5, 2025
  • Ex-Date: December 5, 2025
  • Record Date: December 5, 2025
  • Foreclosure Date: December 5, 2025

Patel Engineering Ltd (Rights Issue)

  • Shut Period: December 3-4, 2025
  • Ex-Date: December 4, 2025
  • Record Date: December 4, 2025
  • Foreclosure Date: December 4, 2025

Engineers India Ltd (Dividend)

  • Shut Period: December 3-4, 2025
  • Ex-Date: December 4, 2025
  • Record Date: December 4, 2025
  • Foreclosure Date: Not specified (shutdown period applies)

Impact Assessment

Market Impact: High - Hindustan Unilever is a large-cap stock with significant SLB activity. Forced closure of positions may create short-term volatility and liquidity pressure.

Operational Impact: SLB participants holding positions in these securities face mandatory position squaring, potentially affecting hedging strategies and creating immediate settlement obligations.

Investor Impact: Lenders and borrowers must ensure positions are closed to avoid penalties and to ensure proper entitlement to corporate action benefits (spin-off shares, rights entitlement, dividend payment).

Impact Justification

Affects SLB positions in major securities with imminent foreclosure dates requiring immediate action by market participants