Description

BSE announces corporate actions affecting SLB securities including Hindustan Unilever spin-off on December 5, Patel Engineering rights issue on December 4, and Engineers India dividend on December 4, 2025.

Summary

BSE has issued a circular regarding corporate actions in Securities Lending and Borrowing (SLB) securities for three companies. Hindustan Unilever Ltd. will undergo a spin-off with ex-date December 5, 2025. Patel Engineering Ltd. has announced a rights issue of equity shares with ex-date December 4, 2025. Engineers India Ltd. will distribute dividends with ex-date December 4, 2025. All these corporate actions will result in foreclosure of SLB positions and shut periods for the respective securities.

Key Points

  • Hindustan Unilever Ltd. spin-off scheduled with book closure and ex-date on December 5, 2025
  • Patel Engineering Ltd. rights issue with book closure and ex-date on December 4, 2025
  • Engineers India Ltd. dividend announcement with ex-date on December 4, 2025
  • Foreclosure dates established for all three securities to settle SLB positions
  • Shut periods defined during which new SLB transactions will not be permitted
  • Market participants holding SLB positions must settle before foreclosure dates

Regulatory Changes

No new regulatory changes introduced. This circular implements existing regulations regarding corporate action procedures in SLB securities to protect market integrity and ensure orderly settlement of lending and borrowing positions.

Compliance Requirements

  • Market participants with SLB positions in Hindustan Unilever Ltd. must close positions by foreclosure date December 5, 2025
  • Market participants with SLB positions in Patel Engineering Ltd. must close positions by foreclosure date December 4, 2025
  • Market participants with SLB positions in Engineers India Ltd. must close positions by ex-date December 4, 2025 (no specific foreclosure date mentioned)
  • No new SLB transactions permitted during the shut periods
  • Clearing members must ensure timely settlement of all outstanding SLB obligations
  • Participants must monitor corporate action calendars for impact on their SLB portfolios

Important Dates

Hindustan Unilever Ltd. (Spin Off)

  • Book Closure/Record Date: December 5, 2025
  • Ex-Date: December 5, 2025
  • Foreclosure Date: December 5, 2025
  • Shut Period: December 4, 2025 to December 5, 2025

Patel Engineering Ltd. (Rights Issue)

  • Book Closure/Record Date: December 4, 2025
  • Ex-Date: December 4, 2025
  • Foreclosure Date: December 4, 2025
  • Shut Period: December 3, 2025 to December 4, 2025

Engineers India Ltd. (Dividend)

  • Book Closure/Record Date: December 4, 2025
  • Ex-Date: December 4, 2025
  • Foreclosure Date: Not specified
  • Shut Period: December 3, 2025 to December 4, 2025

Impact Assessment

Market Impact: High impact on SLB market operations for the three affected securities. Market participants must compulsorily close their lending and borrowing positions before the foreclosure dates, which may create temporary liquidity pressures and increased trading activity in these securities.

Operational Impact: Clearing members and participants need to actively manage their SLB portfolios and ensure timely closure of positions. The shut periods will temporarily reduce available inventory for securities lending, potentially affecting short-selling strategies and hedging activities.

Investor Impact: Investors using SLB mechanisms for these securities must be aware of the mandatory closure requirements. Failure to close positions by foreclosure dates may result in penalties or forced settlements. The corporate actions themselves (spin-off, rights issue, dividend) will also impact shareholders’ holdings and entitlements based on record dates.

Impact Justification

Multiple corporate actions affecting SLB securities for major companies requiring immediate attention. Foreclosure dates and shut periods will impact securities lending and borrowing operations.