Description
NSE Clearing Limited instructs members and custodians on early pay-in procedures for Varvee Global Limited (VGL) ahead of its face value split from Rs 10 to Rs 5 per share, effective March 2, 2026.
Summary
NSE Clearing Limited (NCL) has issued instructions to all members, custodians, and PCMs regarding the early pay-in (EPI) of securities for Varvee Global Limited (VGL) in connection with its upcoming face value split. The stock’s face value will be sub-divided from Rs 10 per share to Rs 5 per share, with both the ex-date and record date set for March 2, 2026. Members must use the old/existing ISIN for EPI on the ex-date and switch to the new ISIN after the record date.
Key Points
- Varvee Global Limited (VGL) is undergoing a face value split (sub-division) from Rs 10 per share to Rs 5 per share.
- Ex-date and record date are both March 2, 2026.
- Existing/Old ISIN: INE273D01019.
- For EPI on March 2, 2026 (Settlement No. 2026042), members must use the old/existing ISIN.
- For EPI on March 4, 2026 (Settlement Nos. 2026042 and 2026043), members must use the new ISIN.
- For sale of 10 shares, the early pay-in in the depository should be done in the old ISIN for a quantity of 5 shares (pre-split equivalent).
- Custodians providing EPI through pool accounts must upload client-wise EPI allocation details based on the 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 must adhere to NCL circular NCL/CMPT/53386 dated August 22, 2022 regarding block mechanism in demat accounts for sale transactions.
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 the consolidated circular NCL/CMPT/67751 dated April 29, 2025, specifically for the VGL corporate action.
Compliance Requirements
- Members/PCMs: Execute EPI instructions in the old ISIN (INE273D01019) for the ex-date (March 2, 2026) without adjusting for the conversion ratio.
- Members/PCMs: Switch to the new ISIN for EPI instructions after the record date (from March 4, 2026 onwards).
- Custodians (pool account EPI): Upload client-wise EPI allocation details reflecting actual traded quantities.
- Custodians/Members (block mechanism EPI): Do not upload client-wise EPI allocation files.
- All participants must ensure EPI quantities in the old ISIN reflect the pre-split equivalent (e.g., 5 shares for a 10-share sale).
Important Dates
| Date | Event |
|---|---|
| February 27, 2026 | Circular issued by NSE Clearing Limited |
| March 2, 2026 | Ex-date and Record date for face value split; EPI in old ISIN for Settlement No. 2026042 |
| March 4, 2026 | EPI in new ISIN for Settlement Nos. 2026042 and 2026043 |
Impact Assessment
This circular has a medium operational impact limited to members, custodians, and PCMs with active positions in Varvee Global Limited (VGL). Participants must carefully manage ISIN transitions around the March 2, 2026 record date to avoid settlement failures or incorrect margin exemption claims. The split ratio (2:1 in share count terms) means EPI quantities in the old ISIN will be half the traded quantity. Failure to follow the prescribed procedure could result in settlement discrepancies or loss of margin exemption benefits. Custodians using pool accounts bear additional responsibility for uploading correct client-wise allocation files.
Impact Justification
Operationally important for members and custodians trading VGL around the face value split record date; requires specific ISIN handling across settlement numbers but is limited in scope to one stock and a defined transition window.