Description

BSE announces corporate actions affecting SLB securities including Hindustan Unilever spin-off, Patel Engineering rights issue, and Engineers India dividend with respective ex-dates and shut periods.

Summary

BSE has issued a circular detailing corporate actions affecting Securities Lending and Borrowing (SLB) positions for three companies. The circular specifies ex-dates, book closure dates, record dates, foreclosure dates, and shut periods for participants with SLB positions in Hindustan Unilever Ltd. (spin-off), Patel Engineering Ltd. (rights issue), and Engineers India Ltd. (dividend).

Key Points

  • Hindustan Unilever Ltd. undergoing spin-off with ex-date and book closure on December 5, 2025
  • Patel Engineering Ltd. rights issue of equity shares with ex-date and record date on December 4, 2025
  • Engineers India Ltd. dividend with ex-date and record date on December 4, 2025
  • SLB positions will be foreclosed on respective dates to facilitate corporate actions
  • Shut periods specified for each corporate action to prevent new SLB transactions

Regulatory Changes

No new regulatory changes. This circular provides operational guidance for handling existing SLB positions during corporate actions in accordance with established SLB framework guidelines.

Compliance Requirements

  • Market participants with SLB positions in the affected securities must settle or rollover positions before foreclosure dates
  • No new SLB transactions permitted during shut periods
  • Lenders and borrowers must ensure compliance with foreclosure timelines
  • Participants must adjust their SLB positions to account for corporate action entitlements

Important Dates

Hindustan Unilever Ltd. (Spin Off)

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

Impact Assessment

Market Impact: High - affects liquidity in SLB market for three securities, particularly Hindustan Unilever which is a large-cap stock with significant SLB activity.

Operational Impact: Participants with open SLB positions must take immediate action to close or adjust positions before foreclosure dates. The spin-off action for Hindustan Unilever requires careful handling of entitlements and position adjustments.

Trading Impact: New SLB transactions in these securities will be restricted during shut periods. Short sellers using SLB mechanism must cover positions or face foreclosure.

Investor Impact: Rights issue participants in Patel Engineering must ensure their shareholding is not encumbered by SLB borrowing to receive entitlements. Dividend eligibility for Engineers India affected by record date positioning.

Impact Justification

High impact due to multiple corporate actions affecting SLB positions in major securities including a large-cap spin-off and rights issue requiring immediate attention from market participants with SLB positions