Description

NSE Clearing notifies members about early pay-in procedures for ABINFRA due to face value split from Rs 10/- to Re 1/- per share with ex-date and record date on October 17, 2025.

Summary

NSE Clearing Limited has issued instructions regarding early pay-in (EPI) procedures for A B Infrabuild Limited (ABINFRA) securities due to a face value split corporate action. The stock will undergo sub-division from Rs 10/- per share to Re 1/- per share, with both ex-date and record date scheduled for October 17, 2025. Members must follow specific procedures for early pay-in using old and new ISINs depending on settlement dates.

Key Points

  • Face value split (sub-division) from Rs 10/- per share to Re 1/- per share for ABINFRA
  • Old ISIN: INE00YB01017
  • Ex-date and Record date: October 17, 2025
  • Early pay-in on October 17, 2025 (Settlement 2025199) must use old/existing ISIN
  • Early pay-in on October 20, 2025 (Settlements 2025199 & 2025200) requires new ISIN
  • Conversion ratio: For sale of 10 shares, early pay-in should be 1 share in old ISIN
  • Block mechanism procedures per SEBI circular NCL/CMPT/53386 dated August 22, 2022 must be followed
  • Client-wise early pay-in allocation file should not be uploaded when using block mechanism

Regulatory Changes

This circular implements Item 10.18 ‘Early Pay-in of Securities for Margin Exemption’ from the consolidated circular (NCL/CMPT/67751) dated April 29, 2025. No new regulatory framework is introduced; this is an application of existing early pay-in procedures to a specific corporate action.

Compliance Requirements

For All Market Participants/Custodians:

  • Execute early pay-in instructions in old/existing ISIN (INE00YB01017) for ex-date/record date transactions
  • Adjust quantity based on split ratio when making early pay-in in depository (1:10 ratio)
  • Adhere to SEBI block mechanism requirements in demat accounts for client sale transactions
  • Execute pay-in/early pay-in instructions in new ISIN after record date

For Custodians Using Pool Accounts:

  • Upload client-wise early pay-in allocation details based on actual traded quantity (post-split quantity)
  • Do not upload client-wise allocation file when using block mechanism

Example Provided: For a sale quantity of 10 shares (post-split), the early pay-in in depository should be executed for 1 share in the old ISIN.

Important Dates

  • October 16, 2025: Circular issue date
  • October 17, 2025: Ex-date and Record date for face value split
  • October 17, 2025: EPI date using old ISIN (Settlement 2025199)
  • October 20, 2025: EPI date using new ISIN (Settlements 2025199 & 2025200)

Impact Assessment

Operational Impact: Market participants and custodians must carefully manage ISIN transitions during the settlement period. The requirement to use different ISINs for different settlement dates creates operational complexity requiring precise execution to avoid settlement failures.

Member Impact: Members trading ABINFRA must ensure their systems and processes correctly handle the split ratio (10:1) when executing early pay-in instructions. Incorrect quantity submissions could result in margin implications or settlement issues.

Client Impact: Clients holding or trading ABINFRA securities need to be aware of the face value split and its impact on share quantities. Custodians must accurately allocate early pay-in benefits to clients based on actual traded quantities post-split.

Risk Considerations: The transition period between old and new ISINs presents operational risk. Failure to follow the specified procedures could result in pay-in rejections, margin calls, or settlement shortages. The block mechanism requirements add an additional compliance layer that must be strictly observed.

Impact Justification

Procedural circular affecting trading and settlement operations for a specific stock undergoing face value split; requires immediate attention from market participants dealing with ABINFRA