Description

BSE announces adjustments to F&O contracts in Coal India Ltd due to interim dividend of Rs. 10.25 per share, with ex-date November 04, 2025.

Summary

BSE will adjust all Futures and Options contracts for Coal India Ltd (Derivative Asset Code: COAL, Scrip Code: 533278) on November 03, 2025, due to an interim dividend of Rs. 10.25 per equity share. The adjustments will be effective from the ex-date of November 04, 2025, impacting both option strike prices and futures reference rates.

Key Points

  • Coal India Ltd declared interim dividend of Rs. 10.25 per equity share for FY 2025-26
  • Record Date for dividend: November 04, 2025
  • Ex-date for adjustments: November 04, 2025
  • Adjustments will be made on November 03, 2025
  • Full dividend value of Rs. 10.25 to be deducted from all option strike prices
  • Futures contracts adjusted by deducting Rs. 10.25 from reference rate
  • Applies to all available F&O contracts on Coal India Ltd

Regulatory Changes

This adjustment is implemented in accordance with:

  • Exchange notice number 20180710-26 regarding Review of Adjustment of corporate actions for stock options
  • SEBI Master circular No SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016

Compliance Requirements

For Trading Members:

  • Acknowledge the adjusted strike prices for Options contracts effective November 04, 2025
  • Note adjusted futures prices using the modified reference rate for November 04, 2025
  • Update trading systems and risk management parameters to reflect adjusted contract specifications
  • Contact respective relationship managers for clarifications

Options Contracts Adjustment:

  • Rs. 10.25 will be deducted from all strike prices generated at end of November 03, 2025
  • Adjusted strike prices available for trading from November 04, 2025

Futures Contracts Adjustment:

  • Adjusted futures price = Reference rate minus Rs. 10.25
  • Reference rate = Daily mark-to-market settlement price on November 03, 2025
  • Adjusted rate becomes base rate/previous close for trading on November 04, 2025

Important Dates

  • October 31, 2025: Circular issued
  • November 03, 2025: Adjustments made to all F&O contracts
  • November 04, 2025: Ex-dividend date; adjusted contracts effective for trading
  • November 04, 2025: Record Date for interim dividend payment

Impact Assessment

Market Impact:

  • All existing open positions in Coal India F&O contracts will be adjusted
  • Strike prices for Options reduced by Rs. 10.25, affecting premium calculations
  • Futures base prices reduced by Rs. 10.25, impacting mark-to-market valuations
  • Traders holding positions through the ex-date need to account for automatic adjustments

Trading Impact:

  • Option strategies (spreads, straddles, strangles) will maintain relative price relationships
  • Hedging positions remain economically neutral post-adjustment
  • Arbitrage opportunities between cash and derivatives eliminated through adjustment mechanism
  • Margin requirements may be recalculated based on adjusted contract values

Operational Impact:

  • Risk management systems must reflect adjusted contract specifications
  • Trading algorithms and automated strategies need to account for adjusted strike prices
  • Client communications required to explain position adjustments

Impact Justification

Mandatory adjustment to all F&O contracts in Coal India Ltd affecting strike prices and futures reference rates, directly impacting active derivative positions and trading strategies.