Description

NSE Clearing mandates early pay-in procedures for BESTAGRO securities undergoing face value split from Rs 10 to Re 1 per share, with specific ISIN handling requirements.

Summary

NSE Clearing Limited has issued guidelines for early pay-in of securities for Best Agrolife Limited (BESTAGRO) in connection with a face value split from Rs 10 per share to Re 1 per share. Members and custodians must follow specific procedures for handling early pay-in using old and new ISINs during the transition period around the record date of January 16, 2026.

Key Points

  • Face value split from Rs 10 per share to Re 1 per share (1:10 ratio)
  • Old ISIN: INE052T01013
  • Record Date and Ex-Date: January 16, 2026
  • Early pay-in on January 16, 2026 (Settlement 2026012) must use old/existing ISIN
  • Early pay-in on January 19, 2026 uses both old ISIN (Settlement 2026012) and new ISIN (Settlement 2026013)
  • For sale of 10 shares, early pay-in must be made for 1 share in old ISIN
  • Block mechanism applies as per SEBI circular (NCL/CMPT/53386 dated August 22, 2022)
  • Client-wise early pay-in allocation file should not be uploaded when using block mechanism
  • Custodians using pool accounts must upload client-wise allocation details based on actual traded quantity

Regulatory Changes

No new regulatory changes introduced. This circular implements existing early pay-in framework (Item 10.18 of consolidated circular NCL/CMPT/67751 dated April 29, 2025) for a specific corporate action scenario.

Compliance Requirements

  • Members/Custodians: Execute early pay-in instructions in old ISIN (INE052T01013) for trades on ex-date/record date without adjusting for conversion ratio
  • Market Participants: Adhere to block mechanism requirements for client demat accounts during sale transactions
  • Market Participants using Block Mechanism: Do not upload client-wise early pay-in allocation file
  • Custodians with Pool Accounts: Must upload client-wise early pay-in allocation details reflecting actual traded quantity (not adjusted quantity)
  • Post-Record Date: Execute all pay-in/early pay-in instructions in new ISIN after January 16, 2026

Important Dates

  • January 16, 2026: Record Date and Ex-Date for face value split
  • January 16, 2026: Early pay-in date for Settlement 2026012 (use old ISIN)
  • January 19, 2026: Early pay-in date for Settlements 2026012 (old ISIN) and 2026013 (new ISIN)

Impact Assessment

Operational Impact: Members and custodians dealing with BESTAGRO securities must implement specific ISIN handling procedures during the transition period. The requirement to use old ISIN with adjusted quantities (1:10 ratio) for early pay-in creates operational complexity requiring system adjustments and careful attention to settlement numbers.

Market Impact: Limited to participants trading BESTAGRO securities around the record date. The early pay-in facility allows margin exemption benefits to continue during the corporate action, supporting normal trading activity.

Risk Considerations: Incorrect ISIN usage or quantity adjustments could result in settlement failures. Clear communication to operations teams and clients is essential to ensure smooth processing during the transition period.

Impact Justification

Operational circular requiring specific early pay-in procedures for members dealing with BESTAGRO during face value split, affecting settlement processes for limited period