Description
BSE announces commencement of trading in Rights Entitlements (REs) for Padam Cotton Yarns Limited from March 2, 2026, with renunciation period running March 2–4, 2026, settled on T+1 trade-for-trade basis.
Summary
BSE Notice No. 20260227-8 informs trading members that Rights Entitlements (REs) for the renunciation of Padam Cotton Yarns Limited will be available for trading on the Exchange effective Monday, March 2, 2026. The REs are settled on a T+1 rolling, trade-for-trade basis and are tradable in dematerialized form only. The underlying Rights Issue is open from March 2 to March 9, 2026.
Key Points
- Rights Entitlements (REs) trading commences on March 2, 2026 under Scrip Code 751092, Scrip ID PADAM-RE, ISIN INE448D20017
- Renunciation trading window: March 2, 2026 to March 4, 2026
- Market lot is 1; Group R
- Settlement on T+1 Rolling Settlement basis on a trade-for-trade basis
- REs are tradable in dematerialized form only
- Rights Issue open period: March 2, 2026 to March 9, 2026
- Unsubscribed or unrenounced REs will lapse and be extinguished after the Issue Closing Date
- Trading members must inform clients that REs are distinct from ordinary shares of the company
Regulatory Changes
No new regulatory changes introduced. This notice operates under the framework established by prior notices: Notice No. 20200305-21 (March 5, 2020) and Notice No. 20200518-34 (May 18, 2020), which govern the trading of Rights Entitlements on BSE.
Compliance Requirements
- Trading members must inform all clients about the commencement of RE trading, specifying the ISIN and clarifying that REs are not ordinary shares
- Contract notes/bills for RE purchases must prominently include a disclaimer stating that purchasing REs only grants the right to participate in the Rights Issue or renounce before closing
- Members must ensure clients are aware of the lapse risk for REs neither subscribed nor renounced by the Issue Closing Date
Important Dates
| Event | Date |
|---|---|
| RE Trading Commences | Monday, March 2, 2026 |
| RE Renunciation Period Ends | Wednesday, March 4, 2026 |
| Rights Issue Opens | March 2, 2026 |
| Rights Issue Closes | March 9, 2026 |
Impact Assessment
This circular has a medium, targeted impact limited to holders of Padam Cotton Yarns Limited shares who have been allotted Rights Entitlements. Trading members dealing in this scrip must act quickly given the narrow 3-day renunciation window (March 2–4). Clients who fail to either subscribe to the Rights Issue or renounce their REs before March 9, 2026 will lose their entitlements entirely. The trade-for-trade settlement mechanism reduces speculative activity and ensures direct delivery obligations for each transaction.
Impact Justification
Routine rights entitlement trading notice affecting holders of Padam Cotton Yarns Limited; impacts a specific set of shareholders and trading members dealing in this scrip, with a short renunciation window and lapse risk for unexercised REs.