Announcements

Mahindra & Mahindra Financial Services (MMFSL) decided to release a rights issue which is set to open on 28th July and close by 11th August. The price for the same is set at Rs. 50 per share.

Understanding what a Rights Entitlement is
A company may resort to various means of raising capital while pursuing expansion goals, attempting to achieve a debt-free status or building new assets. One such means is a rights offer. This involves entitling existing shareholders to a specific number of rights as per the ratio set by the company.

Thus, rights entitlement offers existing shareholders the chance to buy more shares in the company at a discounted price over a specific period of time.

In the case of the MMFSL Rights Issue, the proportion issued is 1:1. This means if you own 1 or more share/s of MMFSL, you’re entitled to 1 of its shares in this rights entitlement.

Important dates to keep in mind for the rights issue
While the rights issue closes on 11th August 2020, here are other dates to keep in mind.

28th July -  Listing of rights entitlement on the exchange

29th July - Rights entitlement credited to your Demat account

10th August-  Last day to trade your rights

Please note that 8th & 9th August is a trading holiday. So, even though the rights entitlement will be suspended for trading on 10th August, the last day to sell your rights entitlement will be 7th August.  So, in case, you do not wish to subscribe to or forfeit your rights, it is advisable to sell these on the market on or before 7th August 2020. 

Square off will be at 3.10 PM for Equity Intraday and F&O, 4.45 PM for Currency Derivatives, and at 11 PM for MCX. Kindly plan your trades accordingly.

?Up to 10X margins on CO and OCO orders in Nifty and Bank Nifty Futures only.
?Up to 10X margins on CO and OCO orders in EQ (for F&O-listed stocks only).
?Up to 5X margins on Intraday orders in EQ (for F&O-listed stocks only).
?Up to 4X margins on Intraday orders in Currency Derivatives.
?Up to 3X margins on Intraday and CO orders in F&O.
?Up to 3X margins on CO orders on Index options (sell side) and up to 2x on buy side.
?Up to 2.5X margins on Intraday orders in MCX.
?OCO orders are blocked for NSE options and MCX.

As per SEBI’s directive in curricular no. CIR/HO/MIRSD/DOP/CIR/P/2019/139 and CIR/HO/MIRSD/DOP/CIR/P/2020/28, we want to update you about three important trading updates, which we are implementing from 31st July 2020, Friday. This is likely to affect some popular trading strategies that you may be using such as- Buy Today - Sell Tomorrow (BTST). 

1) Any equity shares that you have bought on a particular trading day, will not show under your holdings until after T+2 days.
For example: Shares bought on 30th July 2020, Thursday, will not show under your holdings until 4th August 2020, Tuesday.
(Saturdays and Sundays are not trading days and hence don’t count). 

2) Funds from all sell transactions from your holdings will be available for use only on the T+2 day.
For example: In case you sell any shares from your holdings on 31st July 2020, Friday,  the funds that you receive from this transaction will be available for use only on and after 4th August 2020, Tuesday.
(Saturdays and Sundays are not trading days and hence don’t count). 

3) Taking fresh positions under our Margin Trading Facility (MTF) feature have been discontinued from 31st July 2020, Friday, until further notice. We’re working on rolling out a new MTF process as per the updated SEBI guidelines on pledging of shares. 

For more details, you can refer to the SEBI circulars here:

https://upstox-doc.s3.ap-south-1.amazonaws.com/Notifications/Notification-2.pdf

https://upstox-doc.s3.ap-south-1.amazonaws.com/Notifications/Notification-3.pdf 

Square off will be at 3.10 PM for Equity Intraday and F&O, 4.45 PM for Currency Derivatives, and at 11 PM for MCX. Kindly plan your trades accordingly.