Description

NSE Clearing circular regarding early pay-in procedures for FCL securities due to face value split from Rs 2/- to Re 1/- per share, effective October 31, 2025.

Summary

NSE Clearing Limited has issued instructions regarding early pay-in of securities for Fineotex Chemical Limited (FCL) in connection with a face value split from Rs 2/- per share to Re 1/- per share. The circular outlines specific procedures for members and custodians to follow when executing early pay-in of FCL securities during the corporate action period, including ISIN usage and settlement timing.

Key Points

  • Face value split for Fineotex Chemical Limited from Rs 2/- per share to Re 1/- per share
  • Record Date and Ex Date: October 31, 2025
  • Old ISIN: INE045J01026
  • Members must use old/existing ISIN for early pay-in on October 31, 2025 (settlement 2025208)
  • New ISIN to be used for pay-in from November 3, 2025 onwards
  • Early pay-in quantity must be adjusted: for sale of 2 shares, pay-in 1 share in old ISIN
  • Block mechanism 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
  • Custodians using pool accounts must upload client-wise allocation details based on actual traded quantity

Regulatory Changes

No new regulatory changes introduced. This circular provides operational guidance for implementing existing early pay-in procedures under Item 10.18 ‘Early Pay-in of Securities for Margin Exemption’ of consolidated circular NCL/CMPT/67751 dated April 29, 2025, specifically for the FCL corporate action.

Compliance Requirements

  • Members/Trading Participants: Execute early pay-in in depository systems using old ISIN without adjusting for conversion on ex-date/record date (October 31, 2025)
  • Adjustment Calculation: For sale quantity in new terms, divide by split ratio for old ISIN pay-in (e.g., 2 shares sale = 1 share pay-in in old ISIN)
  • Block Mechanism Compliance: Adhere to SEBI circular on block mechanism in demat accounts; do not upload client-wise allocation file when using block mechanism
  • Custodians with Pool Accounts: Must upload client-wise early pay-in allocation details based on actual traded quantity to pass benefits to clients
  • Post-Record Date: Execute all pay-in/early pay-in instructions in new ISIN after October 31, 2025

Important Dates

  • October 31, 2025: Record Date and Ex Date for face value split
  • October 31, 2025: Early pay-in date - use old ISIN (Settlement 2025208)
  • November 3, 2025: Use new ISIN for settlements (Settlement 2025208 & 2025209)

Impact Assessment

Operational Impact: Medium - Members and custodians handling FCL securities must implement specific procedures for a limited period. The requirement to use different ISINs before and after the record date, combined with quantity adjustment calculations, creates operational complexity.

Market Impact: Low to Medium - Limited to FCL security holders and traders. The early pay-in process ensures smooth transition during the face value split without disrupting margin exemption benefits.

Compliance Impact: Medium - Requires careful attention to ISIN selection, quantity calculations, and timing. Incorrect execution could result in settlement failures or loss of margin benefits. Custodians have additional reporting obligations for client allocation details.

Impact Justification

Affects trading members and custodians dealing with FCL securities during face value split. Requires specific procedural compliance for early pay-in using old ISIN before conversion and new ISIN after record date.