Description
NSE Clearing Limited issues instructions for early pay-in of securities for Avro India Limited (AVROIND) in connection with a face value split from Rs 10 to Re 1 per share, effective May 5, 2026.
Summary
NSE Clearing Limited has issued instructions for early pay-in (EPI) of securities for Avro India Limited (AVROIND, ISIN: INE652Z01017) in connection with a face value sub-division from Rs 10 per share to Re 1 per share. Members, custodians, and PCMs must follow specific ISIN and quantity guidelines for pay-in instructions on and around the ex/record date of May 5, 2026.
Key Points
- Avro India Limited (AVROIND) is undergoing a face value split from Rs 10/- to Re 1/- per share
- Both ex-date and record date are May 5, 2026
- Early pay-in on May 5, 2026 must use the old/existing ISIN (INE652Z01017) without adjusting for the conversion
- Early pay-in on May 6, 2026 must use the new ISIN
- For a sale of 10 shares, early pay-in in the old ISIN should be for a quantity of 1 share (pre-split equivalent)
- Custodians using pool accounts must upload client-wise early pay-in allocation details based on actual traded quantity (post-split)
- Client-wise early pay-in allocation files must NOT be uploaded when using block mechanism for early pay-in
Regulatory Changes
No new regulatory changes introduced. This circular operationalizes existing provisions under NCL/CMPT/67751 (dated April 29, 2025) — specifically Item 10.18 on Early Pay-in of Securities for Margin Exemption — and cross-references NCL/CMPT/53386 (dated August 22, 2022) on SEBI’s block mechanism in demat accounts for sale transactions.
Compliance Requirements
- All Members/Custodians/PCMs must execute EPI instructions in the old ISIN for the ex-date/record date (May 5, 2026) without adjusting for the split ratio
- After record date, pay-in/early pay-in instructions must be executed in the new ISIN
- Custodians providing EPI through pool accounts are required to upload client-wise early pay-in allocation details reflecting actual traded (post-split) quantities
- Block mechanism users must not upload the client-wise EPI allocation file
- Quantity adjustment: for every 10 post-split shares sold, EPI in old ISIN should be for 1 share
Important Dates
| Event | Date |
|---|---|
| Circular Date | May 4, 2026 |
| Ex-Date / Record Date | May 5, 2026 |
| EPI in Old ISIN (Settlement 2026082) | May 5, 2026 |
| EPI in New ISIN (Settlements 2026082 & 2026083) | May 6, 2026 |
Impact Assessment
This circular has a medium, targeted operational impact limited to market participants trading Avro India Limited (AVROIND) around the face value split dates. Incorrect ISIN usage or failure to adjust EPI quantities could result in settlement failures or loss of margin exemption benefits. Custodians managing client pools bear additional responsibility for uploading accurate allocation files. Members should update their depository instruction workflows for the specific settlement numbers (2026082 and 2026083) to ensure compliance.
Impact Justification
Stock-specific operational circular affecting members and custodians trading AVROIND during a face value split corporate action. Requires precise ISIN handling and early pay-in quantity adjustments but is limited in scope to one security.