Description
NSE suspends trading in five non-convertible securities from January 14, 2026 due to redemption and call option exercises.
Summary
The National Stock Exchange of India has issued a circular suspending trading in five non-convertible securities (privately placed) effective January 14, 2026. The suspension is pursuant to Regulation 3.1.2 of the NSE Debt Market (Trading) Regulations Part A. All five securities are being suspended due to redemption activities, including two cases where issuers are exercising call options.
Key Points
- Five non-convertible securities will be suspended from trading on January 14, 2026
- Issuers include Citicorp Finance (India) Limited, Muthoot Finance Limited, L&T Finance Limited, Union Bank of India, and NABARD
- Three securities are suspended due to regular redemption
- Two securities are suspended due to redemption for exercising call option
- Action taken under Regulation 3.1.2 of NSE Debt Market (Trading) Regulations Part A
Regulatory Changes
No new regulatory changes introduced. This circular implements existing regulations regarding suspension of debt securities undergoing redemption.
Compliance Requirements
- Exchange members must cease trading in the specified ISINs from January 14, 2026
- Members should update their trading systems to reflect the suspension status
- Bondholders of affected securities should coordinate with issuers for redemption procedures
Important Dates
- Circular Date: January 13, 2026
- Suspension Effective Date: January 14, 2026
Impact Assessment
The suspension affects bondholders and traders in five debt securities across banking, financial services, and development finance sectors. Impact is limited and procedural, as suspensions are due to scheduled redemptions. Bondholders will receive redemption proceeds as per the terms of their securities. No broader market implications expected as these are privately placed securities with limited secondary market trading activity.
Impact Justification
Routine suspension affecting five debt securities due to scheduled redemptions and call option exercises. Impact limited to specific bondholders of these securities.