Leading bourse National Stock Exchange will drop Cairn India from the securities lending and borrowing (SLB) segment from tomorrow as the cash-rich oil producer has merged into its debt-ridden parent Vedanta.
Besides, equity as well as equity derivative trading in the security of Cairn India will be discontinued.
"Participants are requested to note that Cairn India Ltd shall not be available for transactions in the SLB segment with effect from April 26, 2017," the NSE said in a circular.
The SLB mechanism allows short sellers to borrow securities for making deliveries.
Under the merger deal, shareholders of Cairn India will get one share of Vedanta and four redeemable preference shares of face value Rs 10 and coupon of 7.5 per cent.
Furthermore, Cairn India shareholders, as on record date, who will become shareholders of Vedanta, will also receive an interim dividend of Rs 17.70 per share. The record date for the share swap has been set as April 27.
Last week, the BSE had said Cairn India would move out of the its Sensex Next 50 index and several other indices, including energy and infrastructure, from April 26.
Earlier this month, Cairn and Vedanta had announced the completion of the merger, which will help the metal and mining company Vedanta access the cash of Cairn India and cut down debt.
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