Description

NSE Clearing notifies members about early pay-in procedures for SIKKO securities undergoing face value split from Rs 10/- to Re 1/- with ex-date November 27, 2025.

Summary

NSE Clearing Limited has issued instructions regarding early pay-in (EPI) of securities for Sikko Industries Limited (SIKKO) in connection with a face value split from Rs 10/- per share to Re 1/- per share. The corporate action has a record date and ex-date of November 27, 2025. Members and custodians must follow specific procedures for early pay-in using old and new ISINs depending on the settlement date.

Key Points

  • Face value split: Rs 10/- per share to Re 1/- per share (1:10 ratio)
  • Old ISIN: INE112X01017
  • Record Date and Ex-Date: November 27, 2025
  • Settlement Numbers affected: 2025226 (Nov 27), 2025227 (Nov 28)
  • Early pay-in on Nov 27 must be done in old ISIN without adjusting for conversion
  • Early pay-in on Nov 28 can be done in new ISIN
  • For 10 shares sold, early pay-in should be 1 share in old ISIN (pre-split quantity)
  • Block mechanism must be used as per SEBI circular requirements
  • Client-wise allocation file should NOT be uploaded when using block mechanism
  • Custodians using pool accounts must upload client-wise allocation in actual traded quantity

Regulatory Changes

This circular implements the early pay-in procedures outlined in Item 10.18 ‘Early Pay-in of Securities for Margin Exemption’ of the consolidated circular NCL/CMPT/67751 dated April 29, 2025. Members must also adhere to NCL circular NCL/CMPT/53386 dated August 22, 2022 regarding SEBI’s block mechanism in demat accounts for client sale transactions.

Compliance Requirements

  • Trading Members: Execute early pay-in instructions in old ISIN (INE112X01017) for November 27, 2025 (settlement 2025226) using pre-split quantity
  • Trading Members: Use block mechanism for client demat accounts; do not upload client-wise early pay-in allocation file
  • Custodians: If providing early pay-in through pool account, must upload client-wise allocation details using actual traded quantity (post-split quantity)
  • All Market Participants: Execute pay-in/early pay-in instructions in new ISIN after the record date (from November 28, 2025 onwards)
  • Example Compliance: For sale of 10 shares (post-split), early pay-in on November 27 should be 1 share in old ISIN

Important Dates

DateEventISIN to UseSettlement Number
November 27, 2025Ex-Date / Record DateOld ISIN (INE112X01017)2025226
November 28, 2025Post Record DateNew ISIN or Old ISIN2025226 & 2025227
After November 27, 2025Normal OperationsNew ISINSubsequent settlements

Impact Assessment

Operational Impact: Medium - Requires trading members and custodians to implement split-specific early pay-in procedures for a limited period. Incorrect ISIN usage or quantity adjustments could lead to settlement failures.

Market Participants Affected: All trading members, custodians, and PCMs dealing in SIKKO securities during the corporate action period.

Risk Areas:

  • Confusion between old and new ISIN usage during transition period
  • Incorrect quantity calculation (pre-split vs post-split)
  • Improper use of block mechanism and allocation files
  • Settlement failures if procedures not followed correctly

Mitigation: Clear procedural guidelines provided with specific examples; help desk support available at 18002660050 (Option 2) and securities_ops@nsccl.co.in for clarifications.

Impact Justification

Affects trading members and custodians dealing with SIKKO securities during the face value split period, requiring specific procedural compliance for early pay-in to avoid settlement issues.