Description

BSE notifies sub-division (stock split) and bonus issue of equity shares of Silver Touch Technologies Ltd, with details on record date, ratio, and trading adjustments.

Summary

BSE has issued a circular announcing the sub-division (stock split) and bonus issue of equity shares of Silver Touch Technologies Ltd (Scrip Code: 543525). The circular provides details on the applicable record date, split/bonus ratio, revised face value, and adjustments to be made for derivatives and other positions.

Key Points

  • Silver Touch Technologies Ltd (Scrip Code: 543525) has announced a sub-division of equity shares along with a bonus issue.
  • The record date for the corporate action has been fixed as notified by the company.
  • Post sub-division, the face value of equity shares will be revised accordingly.
  • Bonus shares will be issued to eligible shareholders as of the record date.
  • BSE will make necessary adjustments to open positions in derivatives contracts (if any) on account of the corporate action.
  • Ex-date trading adjustments will apply from the relevant date.

Regulatory Changes

No new regulatory changes are introduced. The circular is an operational notice for market participants regarding an upcoming corporate action and associated exchange-level adjustments.

Compliance Requirements

  • Brokers/Members: Ensure client positions are adjusted appropriately post record date; communicate corporate action details to clients.
  • Depositories/Clearing Members: Process sub-division and bonus credit to eligible shareholder accounts as of the record date.
  • Derivatives Participants: Note any adjustments to open futures and options contracts on Silver Touch Technologies Ltd, if applicable.

Important Dates

  • Record Date: As specified in the circular (refer to the attached PDF for the exact date).
  • Ex-Date: One trading day prior to the record date per standard BSE settlement convention.
  • Credit of Bonus Shares: Post record date, as per depository timelines.

Impact Assessment

  • Shareholders: Will receive additional shares via sub-division and bonus issue; effective cost per share reduces proportionally.
  • Market Impact: Increased liquidity expected post-split due to lower per-share price; no change in overall market capitalisation.
  • Derivatives: Any open F&O contracts on the scrip will be adjusted for the corporate action to maintain economic equivalence.
  • Retail Investors: Positive sentiment typically associated with bonus and split announcements; improved affordability of shares post-split.

Impact Justification

Corporate action affecting Silver Touch Technologies Ltd shareholders via sub-division and bonus issue; impacts share price, lot size, and existing positions but is routine corporate action with no regulatory compliance burden on third parties.