Description

NSE circular on early pay-in process for BEML securities due to face value split from Rs 10/- to Rs 5/- per share with record date November 3, 2025.

Summary

NSE Clearing Limited has issued instructions for early pay-in (EPI) of securities for BEML Limited due to a face value split from Rs 10/- to Rs 5/- per share. Members and custodians must use the old ISIN (INE258A01016) for early pay-in on November 3-4, 2025, without adjusting for conversion, and switch to the new ISIN after the record date.

Key Points

  • Face value split ratio: Rs 10/- per share to Rs 5/- per share (1:2 split)
  • Record Date and Ex-Date: November 3, 2025
  • Old ISIN: INE258A01016 (to be used for EPI on specified dates)
  • Early pay-in must be executed in old ISIN without adjusting for conversion
  • For sale of 10 shares, early pay-in should be for 5 shares in old ISIN
  • Block mechanism applies as per NCL circular NCL/CMPT/53386 dated August 22, 2022
  • Client-wise EPI allocation file should not be uploaded when using block mechanism
  • Custodians using pool accounts must upload 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 during a corporate action (face value split).

Compliance Requirements

For Members/Market Participants:

  • Execute early pay-in in old ISIN (INE258A01016) for settlements on November 3-4, 2025
  • Adjust quantity: for sale of 10 shares, pay-in 5 shares in old ISIN
  • Adhere to SEBI block mechanism requirements for client demat accounts
  • Do not upload client-wise EPI allocation file when using block mechanism
  • Switch to new ISIN for pay-in/early pay-in after record date (post November 3, 2025)

For Custodians:

  • Upload client-wise early pay-in allocation details based on actual traded quantity (not adjusted) when using pool accounts
  • Execute early pay-in instructions in old ISIN for ex-date/record date transactions

Important Dates

  • November 3, 2025: Record Date and Ex-Date for face value split
  • November 3, 2025: EPI Date - Settlement Number 2025209 (use old ISIN)
  • November 4, 2025: EPI Date - Settlement Numbers 2025209 & 2025210 (old ISIN for 2025209, new ISIN for 2025210)
  • After November 3, 2025: Use new ISIN for all pay-in/early pay-in instructions

Impact Assessment

Operational Impact: Medium - Requires careful attention to ISIN selection during the transition period. Members and custodians must adjust their settlement processes for two days (November 3-4) to use the old ISIN with quantity adjustments, then switch to the new ISIN.

Market Impact: Low to Medium - Affects only BEML traders and their custodians. The split increases share liquidity by reducing per-share price, but the early pay-in process requires specific handling to avoid settlement failures.

Risk: Potential for settlement failures if members incorrectly use new ISIN during transition period or fail to adjust quantities properly. Clear instructions provided to mitigate this risk.

Impact Justification

Affects settlement procedures for BEML traders and custodians during face value split; requires specific ISIN handling for early pay-in on November 3-4, 2025