Description
BSE announces adjustments to VEDL derivatives contracts due to Rs. 16 per share interim dividend with ex-date August 26, 2025.
Summary
BSE will adjust all Futures and Options contracts for Vedanta Ltd (VEDL) due to an interim dividend of Rs. 16 per share. Adjustments will be made on August 25, 2025, with ex-date on August 26, 2025.
Key Points
- Vedanta Ltd has declared interim dividend of Rs. 16 per equity share for FY 2025-26
- Record date fixed as August 27, 2025
- All VEDL derivatives contracts will be adjusted on August 25, 2025
- Ex-dividend date is August 26, 2025
- Adjustments apply to both Options and Futures contracts
Regulatory Changes
Adjustments made in accordance with:
- Exchange notice 20180710-26 regarding corporate action adjustments for stock options
- SEBI Master circular SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016
Compliance Requirements
Options Contracts:
- Full dividend value (Rs. 16) will be deducted from all strike prices
- Adjustments effective end of trading on August 25, 2025
- Adjusted strike prices available for trading from August 26, 2025
Futures Contracts:
- Adjusted futures price = Reference rate minus Rs. 16 dividend
- Reference rate = Daily mark-to-market settlement price on August 25, 2025
- Adjusted rate serves as base rate for trading from August 26, 2025
Important Dates
- August 25, 2025: Adjustment date for all contracts
- August 26, 2025: Ex-dividend date, adjusted contracts available for trading
- August 27, 2025: Record date for dividend payment
Impact Assessment
High Impact on Derivatives Trading:
- All existing VEDL options positions will have strike prices reduced by Rs. 16
- Futures contract pricing will be adjusted downward by dividend amount
- Position holders need to account for automatic adjustments in their portfolios
- Trading strategies and risk management must factor in the price adjustments
Impact Justification
Mandatory adjustments to all VEDL derivatives contracts affect trading positions and pricing