Description

NSE notifies the commencement of trading in Rights Entitlements (REs) of Hindustan Construction Company Limited from December 12, 2025, with trading period ending December 17, 2025.

Summary

The National Stock Exchange has notified the commencement of trading in Rights Entitlements (REs) of Hindustan Construction Company Limited on the Capital Market segment. Trading in REs (Symbol: HCC-RE1, ISIN: INE549A20026) will begin from December 12, 2025, and continue until December 17, 2025, for renunciation purposes. The REs will be traded in the Trade to Trade segment with compulsory demat for all investors. A total of 799,527,180 Rights Entitlements are available for trading with a market lot of 1.

Key Points

  • Trading Symbol: HCC-RE1 with display name “Hindustan Construction-RE”
  • ISIN: INE549A20026, Series: BE
  • Total Rights Entitlements: 799,527,180
  • Market lot size: 1
  • Trading segment: Trade to Trade with compulsory demat
  • Trading members must inform clients about RE commencement and include disclaimers in contract notes
  • REs that are neither subscribed nor renounced before Issue Closing Date will lapse and be extinguished

Regulatory Changes

This circular is issued in pursuance of:

  • Regulation 3.1.1 of the NSE (Capital Market) Trading Regulations Part A for admission of securities to dealings
  • Regulation 2.5.5 of the NSE (Capital Market) Trading Regulations Part A for lot size specification

Trading members are required to include a prominent disclaimer in contract notes/bills for RE purchases, informing clients that purchasing REs only provides the right to participate in the ongoing Rights Issue or renounce the REs before issue closure.

Compliance Requirements

  • Trading Members: Must inform all clients about the commencement of RE trading, mentioning the ISIN (INE549A20026) and clarifying that REs should not be mistaken for ordinary shares
  • Contract Notes: Must include a prominent disclaimer stating that RE purchase only gives the right to participate in the Rights Issue by making an application with requisite money or renounce the REs before issue closes
  • Client Communication: Must warn clients that REs which are neither subscribed nor renounced on or before the Issue Closing Date shall lapse and be extinguished
  • Trading Mode: All RE trading must be in demat form (compulsory for all investors)

Important Dates

  • Effective Date: December 12, 2025
  • Trading Period Start: December 12, 2025
  • Trading Period End (Renunciation): December 17, 2025
  • Suspension Date: December 18, 2025
  • Circular Issue Date: December 10, 2025

Impact Assessment

Market Impact: Medium - This circular enables existing shareholders of Hindustan Construction Company Limited to trade their Rights Entitlements during a 6-day window. The short trading period creates urgency for shareholders who wish to renounce their rights.

Operational Impact: Trading members need to update their systems to handle the new security code (HCC-RE1) and ensure proper client communication with mandatory disclaimers. The Trade to Trade segment classification means no intraday squaring off is permitted.

Investor Impact: Shareholders must act within the limited 6-day window to either trade or renounce their REs. The compulsory demat requirement ensures all transactions are electronic. Investors who fail to act will have their REs lapse after December 17, 2025, potentially losing the opportunity to participate in the rights issue at a favorable price.

Impact Justification

Medium importance as it affects trading in Rights Entitlements for a specific company with limited trading window. Impact is medium as it requires trading members to inform clients about RE trading mechanics and disclaimer requirements.