Description

Notification of corporate actions affecting SLB (Securities Lending and Borrowing) trading including spin-off, rights issue, and dividend with associated shut periods and ex-dates.

Summary

BSE has notified corporate actions affecting Securities Lending and Borrowing (SLB) operations for three companies: Hindustan Unilever Ltd (spin-off), Patel Engineering Ltd (rights issue), and Engineers India Ltd (dividend). These corporate actions will result in foreclosure of SLB positions and shut periods during which new SLB contracts cannot be created.

Key Points

  • Hindustan Unilever Ltd undergoing spin-off with ex-date and record date of December 5, 2025
  • Patel Engineering Ltd rights issue of equity shares with ex-date and record date of December 4, 2025
  • Engineers India Ltd dividend with ex-date and record date of December 4, 2025
  • All three securities will have mandatory shut periods for SLB trading
  • Foreclosure dates specified for existing SLB positions

Regulatory Changes

No regulatory framework changes. This circular implements existing corporate action procedures for SLB securities.

Compliance Requirements

  • Market participants must close out SLB positions by the specified foreclosure dates
  • No new SLB contracts can be initiated during the shut periods
  • Participants must adjust their positions to account for corporate actions (spin-off adjustments, rights entitlements, dividend impacts)
  • SLB lenders and borrowers must settle positions before shut period commences

Important Dates

Hindustan Unilever Ltd (Spin Off):

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

Patel Engineering Ltd (Rights Issue):

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

Engineers India Ltd (Dividend):

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

Impact Assessment

Market Impact: High - affects SLB market liquidity for three significant securities during shut periods. Participants cannot enter new lending/borrowing positions during these periods.

Operational Impact: Market participants with existing SLB positions must unwind or adjust their positions by foreclosure dates. The spin-off for Hindustan Unilever will require special handling for derivative adjustments. Rights issue participants must account for entitlements in their SLB positions.

Trading Impact: SLB trading will be unavailable during shut periods, potentially affecting hedging strategies and short-selling activities for these securities.

Impact Justification

Impacts SLB trading for three major securities with mandatory shut periods and corporate action adjustments affecting lending/borrowing positions