Description

NSE Clearing announces early pay-in process for GROWWGOLD and GROWWSLVR ETFs undergoing face value split from Rs 10 to Re 1 per share, effective February 6, 2026.

Summary

NSE Clearing Limited has issued instructions regarding the early pay-in (EPI) process for Groww Mutual Fund’s Gold ETF (GROWWGOLD) and Silver ETF (GROWWSLVR) undergoing face value split from Rs 10 per share to Re 1 per share. The record date and ex-date for both securities is February 6, 2026. Members and custodians must execute early pay-in instructions using old ISINs before the record date and new ISINs thereafter, with specific conversion ratios applied.

Key Points

  • Face value split ratio: Rs 10 per share to Re 1 per share (1:10 split)
  • GROWWGOLD old ISIN: INF666M01IW1
  • GROWWSLVR old ISIN: INF666M01LA1
  • Record date and ex-date: February 6, 2026
  • Early pay-in on February 6, 2026 (settlement 2026026) must use old/existing ISIN
  • Early pay-in on February 9, 2026 (settlements 2026026 & 2026027) must use new ISIN
  • For sale of 10 shares, early pay-in should be executed for 1 share in old ISIN
  • Block mechanism requirements per SEBI circular NCL/CMPT/53386 dated August 22, 2022 apply
  • Client-wise allocation file should not be uploaded when using block mechanism

Regulatory Changes

No new regulatory changes introduced. This circular provides operational guidance for implementing existing early pay-in framework (Item 10.18 of consolidated circular NCL/CMPT/67751 dated April 29, 2025) during a corporate action event.

Compliance Requirements

For Members/Market Participants:

  • Execute early pay-in instructions in old ISIN without adjusting for conversion on February 6, 2026
  • Apply conversion ratio: for sale quantity of 10 shares, pay-in 1 share in old ISIN
  • Adhere to SEBI block mechanism requirements for demat accounts
  • Do not upload client-wise early pay-in allocation file when using block mechanism
  • Switch to new ISIN for pay-in/early pay-in instructions after record date

For Custodians:

  • Execute early pay-in through pool accounts using old ISIN on ex-date/record date
  • Upload client-wise early pay-in allocation details based on actual traded quantity (e.g., 10 shares)
  • Execute pay-in instructions in new ISIN after February 6, 2026

Important Dates

  • February 6, 2026: Record date and ex-date for face value split
  • February 6, 2026: EPI date (settlement 2026026) - use old ISIN
  • February 9, 2026: EPI date (settlements 2026026 & 2026027) - use new ISIN
  • After February 6, 2026: All pay-in/early pay-in to be executed in new ISIN

Impact Assessment

Operational Impact: Medium - Members and custodians must carefully manage the transition between old and new ISINs during the settlement cycle. The split requires precise quantity calculations and timing of ISIN usage to avoid settlement failures.

Market Impact: Low to Medium - Affects only two ETF securities (GROWWGOLD and GROWWSLVR). The face value split increases share count 10-fold, improving affordability and liquidity. No impact on total market capitalization.

Participant Impact: Members conducting early pay-in must understand the conversion mechanics and ensure depository instructions use correct ISINs and quantities for respective settlement dates. Errors could result in failed settlements and potential penalties.

Impact Justification

Affects trading and settlement procedures for two Groww ETFs undergoing corporate action; requires specific operational changes from members and custodians for early pay-in process during face value split.