Description
NSE Clearing Limited advises members on early pay-in procedures for five Kotak Mahindra ETFs undergoing face value split from Rs 10 to Re 1 per share, effective February 27, 2026.
Summary
NSE Clearing Limited (NCL) has issued guidance to all Members, Custodians, and PCMs regarding the early pay-in (EPI) process for five Kotak Mahindra Asset Management Company ETFs undergoing a face value split (sub-division) from Rs 10/- per share to Re 1/- per share, with a record date and ex-date of February 27, 2026. Members must use the old/existing ISIN for early pay-in on the ex-date and switch to the new ISIN after the record date.
Key Points
- Five Kotak Mahindra ETFs are undergoing a face value split from Rs 10/- to Re 1/- per share, effective February 27, 2026.
- Early pay-in on February 27, 2026 must be made using the old/existing ISIN without adjusting for the conversion.
- For a sale of 10 shares (post-split quantity), the early pay-in in the depository should be in the old ISIN for a quantity of 1 share.
- From March 2, 2026 onwards, pay-in/early pay-in instructions must use the new ISIN.
- Custodians providing EPI through pool accounts must upload client-wise EPI allocation details based on actual traded quantity (e.g., 10 shares).
- In case of EPI through block mechanism, the client-wise EPI allocation file should not be uploaded.
- Members are reminded to adhere to NCL circular NCL/CMPT/53386 dated August 22, 2022 on Block Mechanism in demat accounts.
Regulatory Changes
No new regulatory changes are introduced. This circular operationalizes existing provisions under Item 10.18 ‘Early Pay-in of Securities for Margin Exemption’ of consolidated circular NCL/CMPT/67751 dated April 29, 2025, specifically for the face value split corporate action of the listed Kotak Mahindra ETFs.
Compliance Requirements
- Members/Custodians/PCMs must use the old/existing ISIN for early pay-in instructions submitted on February 27, 2026 (Settlement No. 2026041).
- On and after March 2, 2026, early pay-in must be executed using the new ISIN (Settlement Nos. 2026041 & 2026042).
- Custodians using pool accounts for EPI must upload client-wise allocation files reflecting actual traded quantities.
- Members using block mechanism for EPI must not upload client-wise allocation files.
- All participants must ensure ISIN conversion ratios are correctly applied when submitting depository instructions around the record date.
Important Dates
| Date | Event |
|---|---|
| February 26, 2026 | Circular issued |
| February 27, 2026 | Ex-date and Record Date for face value split; EPI must use old ISIN (Settlement No. 2026041) |
| March 2, 2026 | EPI must use new ISIN (Settlement Nos. 2026041 & 2026042) |
Impact Assessment
Affected ETFs:
| Security | Symbol | Old ISIN |
|---|---|---|
| Kotak Nifty Bank ETF | BANKNIFTY1 | INF174K01F59 |
| Kotak Nifty India Consumption ETF | CONS | INF174KA1JE5 |
| Kotak Mahindra Mutual Fund - Kotak Silver ETF | SILVER1 | INF174KA1KU9 |
| Kotak Nifty 50 Value 20 ETF | NV20 | INF174K01Z71 |
| Kotak Nifty Midcap 50 ETF | MIDCAP | INF174KA1IB3 |
This circular has a medium operational impact on members and custodians actively trading or holding these five ETFs around the split record date. Failure to use the correct ISIN during settlement could result in failed pay-in instructions or loss of margin exemption benefits. The adjustment ratio (1 old share = 10 new shares) must be correctly applied. Broader market impact is limited as this is an operational/settlement process clarification for a routine corporate action.
Impact Justification
Operational circular affecting members and custodians transacting in five Kotak Mahindra ETFs around the face value split record date; requires specific ISIN handling during settlement but has limited broad market impact.