Description

MCX equity shares to be sub-divided from Rs.10/- per share to Rs.2/- per share in 1:5 ratio with record date January 2, 2026.

Summary

Multi Commodity Exchange of India Ltd (MCX, Scrip Code: 534091) has announced a sub-division of its equity shares with a record date of January 2, 2026. Each existing equity share of face value Rs.10/- will be sub-divided into five equity shares of face value Rs.2/- each. The existing ISIN INE745G01035 will become invalid for transactions from January 2, 2026 onwards, and a new ISIN for the Rs.2/- paid-up shares will be communicated separately.

Key Points

  • Sub-division ratio: 1 share of Rs.10/- into 5 shares of Rs.2/- each
  • Record date: January 2, 2026
  • Effective date: January 2, 2026
  • Current ISIN (INE745G01035) will be invalid from January 2, 2026
  • New ISIN for Rs.2/- shares to be announced separately
  • Applies to dematerialized securities in rolling settlement
  • Company: Multi Commodity Exchange of India Ltd (Scrip Code: 534091)

Regulatory Changes

No regulatory framework changes. This is a standard corporate action under existing regulations.

Compliance Requirements

  • Trading members must update their systems to reflect the new face value of Rs.2/- per share from January 2, 2026
  • Members must discontinue use of existing ISIN INE745G01035 for transactions from the effective date
  • Members must implement the new ISIN once communicated by BSE
  • Systems must be updated to handle the 1:5 sub-division ratio for shareholding adjustments

Important Dates

  • Record Date: January 2, 2026 - Shareholders as of this date will receive sub-divided shares
  • Effective Date: January 2, 2026 - New face value and ISIN become applicable
  • Notice Date: December 22, 2025
  • Old ISIN Invalid From: January 2, 2026

Impact Assessment

Market Impact: The sub-division will increase the number of outstanding shares by 5x while reducing the share price proportionally, making shares more affordable for retail investors. This could improve liquidity and trading volumes.

Operational Impact: Trading members and depositories must update their systems to handle the new ISIN and adjusted share quantities. All positions, holdings, and pending orders must be adjusted for the 1:5 ratio.

Shareholder Impact: Existing shareholders will receive 5 shares for every 1 share held as of the record date. The total value of holdings remains unchanged as the market price will adjust proportionally.

System Requirements: Critical system updates required before January 2, 2026 to ensure seamless transition to new ISIN and share denomination.

Impact Justification

Stock sub-division is a significant corporate action affecting all MCX shareholders. Requires system updates for new ISIN and adjusted share price, but does not impact overall shareholder value.