Description
BSE announces trading in Rights Entitlements (REs) for renunciation of Padam Cotton Yarns Limited, effective March 2, 2026, with the rights issue open from March 2 to March 9, 2026.
Summary
BSE has announced that trading in Rights Entitlements (REs) for renunciation of Padam Cotton Yarns Limited will be permitted on the Exchange with effect from Monday, March 2, 2026. The Rights Issue itself will remain open from March 2, 2026 to March 9, 2026.
Key Points
- Rights Entitlements (REs) for Padam Cotton Yarns Limited will be tradable on BSE from March 2, 2026
- Trading period for renunciation: March 2, 2026 to March 4, 2026
- Scrip Code: 751092 | Scrip ID: PADAM-RE | ISIN: INE448D20017
- Market Lot: 1 | Group: R
- Settlement on T+1 Rolling Settlement basis on a trade-for-trade basis
- REs are tradable in dematerialised form only
- REs that are neither subscribed nor renounced by the Issue Closing Date will lapse and be extinguished
Regulatory Changes
No new regulatory changes introduced. The circular operates under the existing framework for Rights Entitlements trading as detailed in BSE notices 20200305-21 (March 5, 2020) and 20200518-34 (May 18, 2020).
Compliance Requirements
- Trading members must inform all clients about the commencement of trading in REs, mentioning the ISIN (INE448D20017)
- Members must clarify that REs must not be mistaken for ordinary shares of the company
- A prominent disclaimer must be included in contract notes/bills for RE purchases, stating that purchasing REs only confers the right to participate in the rights issue or renounce before closing
- Members must communicate that unsubscribed and unrenounced REs will lapse after the Issue Closing Date
Important Dates
| Event | Date |
|---|---|
| Trading in REs commences | March 2, 2026 (Monday) |
| Trading period for renunciation | March 2, 2026 – March 4, 2026 |
| Rights Issue opens | March 2, 2026 |
| Rights Issue closes | March 9, 2026 |
Impact Assessment
This circular has a focused, company-specific impact. Existing shareholders of Padam Cotton Yarns Limited who received Rights Entitlements may trade (renounce) them on BSE between March 2 and March 4, 2026. Investors who purchase REs should be aware these are instruments tied to the rights issue and not ordinary equity shares. The T+1 trade-for-trade settlement mechanism reduces counterparty risk. REs that remain unrenounced and unsubscribed by March 9, 2026 will be extinguished, making timely action essential for RE holders.
Impact Justification
Company-specific circular enabling trading in rights entitlements for a single SME/small-cap company; relevant primarily to existing shareholders and rights issue participants.