Description
Guidelines for early pay-in process due to face value split from Rs 10/- to Rs 5/- per share for KMEW, effective December 22, 2025.
Summary
NSE Clearing Limited has issued guidelines for early pay-in (EPI) of securities for Knowledge Marine & Engineering Works Limited (KMEW) in light of an upcoming face value split. The stock will undergo sub-division from Rs 10/- per share to Rs 5/- per share with record date and ex-date on December 22, 2025. Members and custodians must follow specific procedures for early pay-in using old and new ISINs during the transition period.
Key Points
- Face value split from Rs 10/- to Rs 5/- per share for KMEW
- Record Date and Ex-Date: December 22, 2025
- Old ISIN: INE0CJD01011
- Early pay-in on December 22, 2025 (Settlement 2025243) must use old/existing ISIN
- Early pay-in on December 23, 2025 (Settlements 2025243 & 2025244) transitions to new ISIN
- Adjusted quantity required: For sale of 10 shares, early pay-in should be 5 shares in old ISIN
- Block mechanism circular NCL/CMPT/53386 dated August 22, 2022 applies
- Client-wise 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. This circular implements existing early pay-in procedures (Item 10.18 of consolidated circular NCL/CMPT/67751 dated April 29, 2025) for a specific corporate action event.
Compliance Requirements
For Members/Market Participants:
- Execute early pay-in instructions in old ISIN (INE0CJD01011) for ex-date/record date December 22, 2025
- Adjust quantity proportionally (e.g., 5 shares in old ISIN for 10 shares sale)
- Comply with SEBI block mechanism requirements per NCL circular NCL/CMPT/53386 dated August 22, 2022
- Do not upload client-wise early pay-in allocation file when using block mechanism
- Execute pay-in/early pay-in in new ISIN after record date
For Custodians:
- If providing early pay-in through pool account, upload client-wise allocation details based on actual traded quantity (not adjusted quantity)
- Follow same ISIN transition process as members
Important Dates
- December 19, 2025: Circular issue date
- December 22, 2025: Record date and ex-date for face value split; Settlement Number 2025243 (use old ISIN)
- December 23, 2025: Settlement Numbers 2025243 & 2025244 (use new ISIN)
- Post-December 22, 2025: All pay-in/early pay-in to be executed in new ISIN
Impact Assessment
Operational Impact: Medium - Members and custodians must carefully manage the ISIN transition during the two-day settlement period. Incorrect ISIN usage or quantity adjustment errors could result in settlement failures.
Market Impact: Low to Medium - Affects only KMEW stock holders and traders. The corporate action itself is routine, but the dual-ISIN early pay-in window requires operational attention.
Compliance Impact: Medium - Requires strict adherence to block mechanism rules and proper quantity calculations during the transition period. Custodians must ensure correct allocation reporting based on actual vs. adjusted quantities.
Impact Justification
Specific procedural guidance for members/custodians handling early pay-in during corporate action affecting single stock