Description

BSE announces shut periods for Securities Lending and Borrowing (SLB) across 28 companies declaring dividends, with ex-dates ranging from February 5-20, 2026.

Summary

BSE has issued a circular detailing corporate actions affecting Securities Lending and Borrowing (SLB) operations for 28 companies declaring dividends. The circular specifies shut periods during which SLB transactions will be restricted for these securities. The shut periods align with the book closure/record dates for dividend distribution, with ex-dates spanning from February 5, 2026 to February 20, 2026.

Key Points

  • 28 companies are declaring dividends with corresponding SLB shut periods
  • All corporate actions listed are dividend-related
  • Shut periods are one or two days immediately preceding and including the record date
  • Ex-dates range from February 5, 2026 to February 20, 2026
  • Most securities have shut periods of 2 days duration
  • Two securities (IRB Infrastructure and Torrent Pharmaceuticals) have 3-day shut periods
  • SLB participants cannot initiate new lending/borrowing transactions during shut periods for affected securities

Regulatory Changes

No new regulatory changes. This circular implements existing SLB framework requirements for corporate action periods.

Compliance Requirements

  • Market participants must not initiate new SLB transactions for the listed securities during their respective shut periods
  • Existing SLB positions must be managed considering the upcoming shut periods and record dates
  • Trading members and participants must ensure systems reflect the SLB restrictions during shut periods
  • Participants should plan settlement obligations around the specified foreclosure and shut period dates

Important Dates

Earliest Actions:

  • February 4-5, 2026: Sun Pharmaceutical Industries (Shut period)
  • February 5, 2026: Ex-date for Sun Pharmaceutical

Mid-February Actions (February 9-13):

  • February 9-10: Apollo Tyres, Jubilant Ingrevia, NHPC, Tube Investments, Emami, CCL Products (Shut periods)
  • February 10-11: Hero MotoCorp, Cummins India, UNO Minda, FDC, Rail Vikas Nigam, J.B. Chemicals (Shut periods)
  • February 11-12: Sun TV Network, Repco Home Finance (Shut periods)
  • February 12-13: Minda Corporation, VRL Logistics, Shivalik Bimetal, Mazagon Dock, Hindustan Copper, BEML (Shut periods)

Later February Actions:

  • February 16-17: International Gemmological Institute, Mrs. Bectors Food (Shut periods)
  • February 17-19: IRB Infrastructure, Torrent Pharmaceuticals (Shut periods - 3 days)
  • February 17-18: Oil and Natural Gas Corporation (Shut period)
  • February 19-20: Power Finance Corporation (Shut period)

Impact Assessment

Market Impact: Medium - affects liquidity in the SLB segment for 28 securities temporarily

Operational Impact:

  • SLB participants must adjust lending/borrowing strategies around shut periods
  • Reduced availability of securities for borrowing during peak dividend season
  • Market makers and arbitrageurs need to plan positions considering the restrictions

Sector Coverage: Diverse sectors including pharmaceuticals (Sun Pharma, Torrent, FDC, J.B. Chemicals), automotive (Hero MotoCorp, Apollo Tyres, Minda Corp, UNO Minda), energy (ONGC), infrastructure (IRB, RVNL, RITES), and public sector enterprises (PFC, NHPC, BEML, Mazagon Dock)

Trading Considerations:

  • Concentrated timing in mid-February may impact overall SLB market liquidity
  • Participants holding short positions via SLB must ensure compliance with dividend obligations
  • Standard corporate action procedure; market participants familiar with such restrictions

Impact Justification

Affects SLB trading operations for 28 securities during dividend distribution periods. Important for securities lending participants but routine corporate action with limited broader market impact.