Description
NSE notifies commencement of trading in Rights Entitlements (REs) of Utkarsh Small Finance Bank Limited with effect from October 24, 2025. Trading members must inform clients about RE trading requirements and include mandatory disclaimers in contract notes.
Summary
NSE has admitted Rights Entitlements (REs) of Utkarsh Small Finance Bank Limited for trading on the Capital Market segment with effect from October 24, 2025. The REs will trade under symbol UTKAR-RE (ISIN: INE735W20017) in the Trade to Trade segment with compulsory demat. Trading members are required to inform clients about RE trading and include specific disclaimers in contract notes regarding the nature and risks of RE purchases.
Key Points
- Rights Entitlements of Utkarsh Small Finance Bank Limited admitted to trading effective October 24, 2025
- Symbol: UTKAR-RE, Series: BE, ISIN: INE735W20017
- Total REs: 677,913,784
- Market lot: 1 unit
- Trading in Trade to Trade segment with compulsory demat for all investors
- REs shall not be mistaken for ordinary shares of the company
- Mandatory client disclosure requirements for trading members
- Disclaimer required in contract notes for RE purchases
- Unsubscribed or non-renounced REs will lapse after Issue Closing Date
Regulatory Changes
No regulatory changes introduced. This circular implements existing regulations under NSE Capital Market Trading Regulations Part A (Regulation 3.1.1 for security admission and Regulation 2.5.5 for lot sizes) for the specific rights issue.
Compliance Requirements
For Trading Members:
Client Notification: Inform all clients about commencement of trading in REs, mentioning the ISIN (INE735W20017) and clarifying that REs are not ordinary shares
Mandatory Disclaimer in Contract Notes: Include prominent disclaimer in contract notes/bills for RE purchases stating:
- Purchase of REs only provides right to participate in Rights Issue by making application with requisite money OR renounce REs before issue closes
- REs neither subscribed nor renounced on or before Issue Closing Date will lapse and be extinguished
System Identification: Use designated security codes for trading purposes
Lot Size Compliance: Execute trades in specified lot sizes (1 unit per lot)
Important Dates
- Circular Date: October 20, 2025
- Trading Commencement: October 24, 2025
- Renunciation Trading Period: October 24, 2025 to October 28, 2025
- Date of Suspension: October 29, 2025
- Circular Effective Date: October 24, 2025
Impact Assessment
Market Impact: Medium - affects trading in specific rights entitlements for 5-day period (October 24-28, 2025). Large number of REs (677.9 million) may see active trading.
Operational Impact: Trading members must ensure compliance systems capture RE trades and generate appropriate client disclosures. Contract note generation systems need disclaimer insertion for RE purchases.
Investor Impact: Existing shareholders and potential RE buyers must understand distinction between REs and ordinary shares. Investors purchasing REs must either subscribe to rights issue with payment or renounce before October 28, 2025, otherwise REs will lapse.
Segment Classification: Trade to Trade segment placement with compulsory demat ensures full settlement discipline and prevents speculative short selling in REs.
Impact Justification
Standard rights issue RE trading notification affecting specific stock with defined trading period and member compliance requirements