The National Stock Exchange (NSE) on July 04, 2024, issued a circular regarding the adjustment of Futures and Options contracts in the security MPHASIS.
The following has been stated: -
•In pursuance of Byelaws of NICCL, SEBI guidelines for adjustments to Futures and Options contracts on announcement of corporate action and Circular no. NSEIFSC/TRADE/1738 dated July 03, 2024, members are hereby informed that the procedure for adjustment of Futures and Options contracts in the underlying security MPHASIS LIMITED on account of a dividend of Rs.55 per equity share shall be as under.
•Action by the Clearing Corporation in respect of Futures and Options Contracts:
With reference to the above-mentioned circular from Trading and in accordance with SEBI guidelines, all open positions in Futures and Options contracts with the underlying security as MPHASIS existing on July 09, 2024, shall be adjusted as under:
•Futures Price: All positions in futures contracts with the underlying security as MPHASIS would be marked-to-market on the last cum-dividend date i.e. July 09, 2024, based on the daily settlement price of the respective futures contract.
•Adjusted value: Begin of day margins on July 10, 2024, would be computed for the futures contract with underlying as MPHASIS based on the adjusted carry forward value.
•Subsequently, intra-day margins would be computed based on the relevant traded prices at the time the intra-day span risk parameter files are generated. Members are advised to note that there won't be any change in the existing PS03 and PS04 files for MPHASIS on July 09, 2024. Both the files will reflect figures for MPHASIS without any adjustment for corporate action.
[Circular Ref. No: 077/2024]
