Extinguishment and Cancellation of 1,451,702 Equity Shares of Keynote Financial Services Limited

Description

Cancellation of equity shares held by Keynote Trust pursuant to NCLT-approved Scheme of Selective Reduction of Capital effective January 20, 2026.

Summary

NSE has notified the extinguishment and cancellation of 1,451,702 equity shares of Keynote Financial Services Limited (KEYFINSERV) held by Keynote Trust. The cancellation is pursuant to a Scheme of Selective Reduction of Capital approved by the Hon’ble NCLT Mumbai Bench vide Order dated January 09, 2025, under Section 66 read with Section 52 and other applicable sections of the Companies Act, 2013.

Key Points

• Total shares to be cancelled: 1,451,702 equity shares of Rs. 10/- each (face value and paid-up value)
• Shares held by: Keynote Trust
• ISIN: INE681C01015 (Series: EQ)
• Legal basis: NCLT Mumbai Bench Order dated January 09, 2025
• Cancellation effective date: January 20, 2026
• Scheme: Selective Reduction of Capital between the Company and its shareholders and creditors
• The cancellation covers shares across multiple distinctive number ranges as detailed in Annexure I

Regulatory Changes

The circular is issued in pursuance of:

• Regulation 3.1.1 of the National Stock Exchange (Capital Market) Trading Regulations Part A - notifying cancellation and extinguishment of securities
• Regulation 2.5.5 of the National Stock Exchange (Capital Market) Trading Regulations Part A - specifying lot sizes for trading

Compliance Requirements

• Trading members must note the reduced share capital of Keynote Financial Services Limited
• The security shall be identified only by its designated codes for trading purposes
• Trading shall be conducted in lot sizes as specified in the Annexure
• Dematerialized units have been credited under temporary ISIN (IN8*********) in accordance with SEBI circulars CIR/MRD/DP/21/2012 (August 02, 2012) and CIR/MRD/DP/24/2012 (September 11, 2012)

Important Dates

• January 09, 2025: NCLT Mumbai Bench Order approving the Scheme
• January 19, 2026: Circular issued by NSE
• January 20, 2026: Effective date of share cancellation and extinguishment

Impact Assessment

Market Impact: The cancellation of 1.45 million shares will reduce the outstanding share capital of Keynote Financial Services Limited, potentially affecting the stock’s float and liquidity. This is a selective reduction targeting shares held by Keynote Trust rather than a broad-based buyback.

Shareholder Impact: Only affects Keynote Trust as the holder of the cancelled shares. Other shareholders are not directly impacted by the extinguishment, though the reduced share base may affect ownership percentages and voting rights proportionally.

Corporate Governance: The court-approved scheme demonstrates compliance with statutory requirements under the Companies Act, 2013 and NCLT Rules, 2016, providing legal certainty to the capital reduction process.

Impact Justification

Material corporate action affecting capital structure through court-approved selective capital reduction; impacts existing shareholders but limited to shares held by Keynote Trust