Description

NSE announces face value split of MCX equity shares from Rs. 10 to Rs. 2, effective January 2, 2026.

Summary

The National Stock Exchange of India has announced a face value split for Multi Commodity Exchange of India Limited (MCX). The face value and paid-up value of MCX equity shares will be reduced from Rs. 10 to Rs. 2 per share, effective January 2, 2026.

Key Points

  • Company: Multi Commodity Exchange of India Limited (Symbol: MCX)
  • Existing face value: Rs. 10 per share
  • New face value: Rs. 2 per share
  • Split ratio: 1:5 (each share of Rs. 10 will be subdivided into 5 shares of Rs. 2 each)
  • Circular reference: NSE/CML/72042, Circular No. 2535/2025
  • Issuing department: Listing Department

Regulatory Changes

This is a corporate action involving subdivision of equity shares. No regulatory framework changes are involved. The action complies with existing SEBI and Companies Act provisions for face value splits.

Compliance Requirements

  • All NSE members are informed of the change
  • Trading systems will reflect the new face value and adjusted share count from the effective date
  • Members should update their systems and inform clients accordingly
  • Existing shareholders will receive additional shares in proportion to their holdings

Important Dates

  • Circular Date: December 29, 2025
  • Effective Date: January 2, 2026

Impact Assessment

Market Impact: The face value split will increase the number of outstanding shares by 5 times while proportionally reducing the share price. This typically improves liquidity and makes shares more accessible to retail investors. The market capitalization of MCX remains unchanged.

Investor Impact: Existing shareholders will receive 5 shares for every 1 share held. The total value of their holdings remains the same immediately after the split. Enhanced liquidity may attract more retail participation.

Operational Impact: Trading systems, demat accounts, and related infrastructure will automatically adjust to reflect the new share count and face value from January 2, 2026.

Impact Justification

Corporate action affecting MCX equity shares through face value subdivision, impacting share pricing and liquidity but routine in nature