Description

Cancellation of 14,51,702 equity shares of Rs. 10/- each of Keynote Financial Services Ltd (Scrip code: 512597) as per NCLT-approved Scheme of Selective Capital Reduction under Section 66 of the Companies Act, 2013.

Summary

BSE has announced the extinguishment and cancellation of 14,51,702 equity shares of Rs. 10/- each of Keynote Financial Services Limited (Scrip code: 512597). This action is pursuant to the Scheme of Selective Capital Reduction of the Issued, Subscribed and Paid-Up share capital approved by the Hon’ble National Company Law Tribunal (NCLT) Mumbai Bench vide Order dated January 09, 2025. The scheme is implemented under Section 66 read with Section 52 and other applicable sections of the Companies Act, 2013 and National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016.

Key Points

  • Total shares to be cancelled: 14,51,702 equity shares of Rs. 10/- each
  • Company: Keynote Financial Services Limited
  • Scrip Code: 512597
  • Legal basis: Section 66 read with Section 52 of the Companies Act, 2013
  • NCLT approval date: January 09, 2025
  • Type of reduction: Selective Capital Reduction
  • Multiple distinctive number ranges affected, with largest single block being 380,000 shares (distinctive nos. 1121021 to 1501020)

Regulatory Changes

The capital reduction is executed under the National Company Law Tribunal (Procedure for Reduction of Share Capital of Company) Rules, 2016. This selective capital reduction will result in a decrease in the company’s issued, subscribed, and paid-up share capital by the cancelled share amount.

Compliance Requirements

  • The company must comply with NCLT order dated January 09, 2025
  • Shareholders holding the specified distinctive number ranges will have their shares extinguished
  • The company must update its capital structure records post-cancellation
  • BSE listing records will reflect the reduced capital structure

Important Dates

  • NCLT Order Date: January 09, 2025
  • BSE Circular Date: January 19, 2026
  • Effective Date: As per implementation of the scheme

Impact Assessment

This selective capital reduction will impact shareholders holding shares within the specified distinctive number ranges. The cancellation of 14.51 lakh shares represents a material change in the company’s capital structure. The selective nature suggests targeted buyback or reduction from specific shareholders rather than a pro-rata reduction across all shareholders. Market participants should note the reduced share capital when evaluating the company’s financials and shareholding patterns. The NCLT approval ensures the reduction is legally compliant and protects creditor interests.

Impact Justification

Significant capital reduction affecting 14.5 lakh shares of a listed company, approved by NCLT, impacts shareholding structure but limited to specific shareholders under selective reduction scheme