Description

NSE Clearing Limited advises members on early pay-in procedures for LICMFGOLD ETF due to a face value split from Rs 100 to Re 1 per share, effective March 6, 2026.

Summary

NSE Clearing Limited (NCL) has issued guidance on the early pay-in (EPI) of securities for the LIC Mutual Fund Gold ETF (symbol: LICMFGOLD) in connection with a face value split (sub-division) from Rs 100 per share to Re 1 per share. Members, custodians, and PCMs must follow specific instructions for EPI on and around the record date of March 6, 2026.

Key Points

  • LICMFGOLD (ISIN: INF397L01554) is undergoing a face value split from Rs 100/- per share to Re 1/- per share.
  • Both the record date and ex-date are March 6, 2026.
  • For EPI on March 6, 2026 (settlement 2026045), members must use the old/existing ISIN.
  • For EPI on March 9, 2026 (settlement 2026045 & 2026046), members must use the new ISIN.
  • Early pay-in quantities must not be adjusted for the conversion ratio on the ex-date/record date; for a sale of 100 shares, EPI in old ISIN should be for 1 share.
  • Custodians doing EPI via pool account must upload client-wise EPI allocation details based on actual traded quantity (e.g., 100 shares).
  • In case of EPI through block mechanism, client-wise EPI allocation file must NOT be uploaded.

Regulatory Changes

This circular references and supplements NCL’s consolidated circular NCL/CMPT/67751 (April 29, 2025) on early pay-in of securities for margin exemption, and NCL circular NCL/CMPT/53386 (August 22, 2022) on SEBI’s block mechanism in demat accounts for clients undertaking sale transactions.

Compliance Requirements

  • Members and custodians must use the old ISIN (INF397L01554) for EPI instructions on or before the record date (March 6, 2026).
  • After the record date, EPI/pay-in instructions must be executed in the new ISIN.
  • Custodians providing EPI through pool accounts must upload client-wise allocation files based on actual traded (post-split) quantities.
  • Members using block mechanism must not upload client-wise EPI allocation files.
  • For queries, contact NSE help desk at 18002660050 (Option 2) or securities_ops@nsccl.co.in.

Important Dates

  • Ex-Date / Record Date: March 6, 2026
  • EPI in Old ISIN: March 6, 2026 (Settlement No. 2026045)
  • EPI in New ISIN: March 9, 2026 (Settlement Nos. 2026045 & 2026046)

Impact Assessment

This circular has a targeted operational impact on members, custodians, and PCMs trading LICMFGOLD ETF around the face value split date. Incorrect ISIN usage or quantity adjustments during EPI could result in settlement failures or margin benefit loss. The guidance is technical and procedural, with limited broader market impact, but critical for affected participants to avoid operational errors during the corporate action window.

Impact Justification

Operationally significant for members and custodians trading LICMFGOLD ETF around the face value split record date; requires specific early pay-in handling in old ISIN before and new ISIN after record date.