Description
NSE Clearing circular on early pay-in process for KOTAKBANK securities during face value split from Rs 5 to Re 1 per share with record date January 14, 2026.
Summary
NSE Clearing has issued instructions for early pay-in (EPI) of Kotak Mahindra Bank Limited (KOTAKBANK) securities during the face value split corporate action. The stock will undergo sub-division from Rs 5 per share to Re 1 per share with record date and ex-date on January 14, 2026. Members must follow specific ISIN-based pay-in procedures on different settlement dates to ensure proper margin exemption and settlement.
Key Points
- Face value split: Rs 5 per share to Re 1 per share (5:1 ratio)
- Record Date and Ex-Date: January 14, 2026
- Old ISIN: INE237A01028
- Members must use old ISIN for early pay-in on January 14-15, 2026
- New ISIN to be used from January 16, 2026 onwards
- Early pay-in quantity must be in old ISIN terms (e.g., 1 share in old ISIN for 5 shares sold)
- Client-wise allocation file should reflect actual traded quantity
- Block mechanism applies as per SEBI circular NCL/CMPT/53386 dated August 22, 2022
Regulatory Changes
This circular implements Item 10.18 ‘Early Pay-in of Securities for Margin Exemption’ from the consolidated circular (Download Ref No: NCL/CMPT/67751) dated April 29, 2025. The specific process addresses the temporary ISIN transition period during corporate action to maintain proper settlement and margin exemption benefits.
Compliance Requirements
For Members/Market Participants:
- Execute early pay-in instructions in Old ISIN (INE237A01028) for settlements on January 14-15, 2026
- Adjust quantity proportionally (1 old share = 5 new shares) when doing early pay-in
- Adhere to block mechanism requirements per NCL/CMPT/53386 circular
- Do NOT upload client-wise early pay-in allocation file when using block mechanism
- Switch to New ISIN for pay-in/early pay-in after record date (from January 16, 2026)
For Custodians:
- Provide early pay-in through pool account where applicable
- Upload client-wise early pay-in allocation details based on actual traded quantity (not adjusted quantity)
- Example: For 5 shares sold, allocation file shows 5 shares even though depository pay-in is 1 share in old ISIN
Important Dates
| Date | Settlement Number | ISIN to Use for EPI |
|---|---|---|
| January 14, 2026 | 2026010 | Old/Existing ISIN (INE237A01028) |
| January 15, 2026 | 2026010 & 2026011 | Old/Existing ISIN (INE237A01028) |
| January 16, 2026 | 2026010, 2026011 & 2026012 | New ISIN |
Record Date: January 14, 2026
Ex-Date: January 14, 2026
Impact Assessment
Operational Impact (High): Market participants must modify their operational procedures for a 3-day period to handle dual ISIN requirements. Incorrect ISIN usage or quantity adjustments will result in settlement failures and loss of margin exemption benefits.
Trading Impact (High): All members trading KOTAKBANK during the transition period must implement special handling. The 5:1 split ratio requires careful quantity conversion for early pay-in while maintaining actual trade quantity for client allocations.
Client Impact (Medium): Clients undertaking sale transactions must ensure their demat accounts have proper blocks in place. The conversion ratio affects margin calculations and settlement obligations during the transition period.
Contact for Queries:
- Helpdesk: 18002660050 (Option 2)
- Email: securities_ops@nsccl.co.in
Impact Justification
Critical operational circular requiring specific early pay-in procedures during corporate action period to prevent settlement failures; affects all market participants trading KOTAKBANK during face value split