Description

BSE informs trading members that Kotak Mahindra AMC has fixed February 27, 2026 as the record date for a face value split of KOTAK NIFTY BANK ETF units from Rs. 10/- to Re. 1/-.

Summary

BSE Notice No. 20260220-13 informs trading members that Kotak Mahindra Asset Management Company Limited has announced a split of units of the KOTAK NIFTY BANK ETF (Scrip Code: 590136, ISIN: INF174K01F59). The face value of each unit will change from Rs. 10/- to Re. 1/-, with a record date of February 27, 2026.

Key Points

  • KOTAK NIFTY BANK ETF (Scrip Code: 590136) units will undergo a face value split from Rs. 10/- to Re. 1/- per unit
  • Record date and Ex-Date are both set for February 27, 2026 (Settlement No. DR-830/2025-2026)
  • Existing ISIN INF174K01F59 is associated with the old face value
  • New ISIN for the post-split units will be communicated via a separate BSE notice
  • Trading with the new face value commences effective February 27, 2026

Regulatory Changes

No new regulatory framework is introduced. This is a corporate action (unit split) under existing SEBI and exchange guidelines for ETF schemes. The change in face value is effected by Kotak Mahindra AMC in accordance with applicable mutual fund regulations.

Compliance Requirements

  • Trading members must update their systems to reflect the new face value of Re. 1/- per unit effective February 27, 2026
  • Members should await the separate BSE notice announcing the new ISIN number before processing post-split transactions under the new ISIN
  • Depository participants and clearing members should account for the proportional increase in unit quantity for existing holders on the record date

Important Dates

  • Record Date: February 27, 2026
  • Ex-Date: February 27, 2026 (DR-830/2025-2026)
  • Effective date for new face value trading: February 27, 2026
  • New ISIN announcement: To be notified separately by BSE

Impact Assessment

The face value split of KOTAK NIFTY BANK ETF from Rs. 10/- to Re. 1/- (a 10:1 split ratio) will result in a tenfold increase in the number of units held by investors on the record date, while the NAV per unit will adjust proportionally. This does not affect the total investment value but improves unit affordability and liquidity in the secondary market. Trading members and depository participants need to update their back-office systems ahead of the ex-date. Investors holding the ETF should note the forthcoming ISIN change and ensure their demat accounts reflect the correct post-split holdings.

Impact Justification

Unit split affects existing holders of KOTAK NIFTY BANK ETF (scrip 590136) by changing face value from Rs. 10 to Re. 1; increases unit liquidity but does not change intrinsic value. New ISIN to be announced separately, requiring attention from trading members and investors.