Description
BSE announces adjustments to F&O contracts for HDFC AMC due to 1:1 bonus issue with record date November 26, 2025. Adjustment factor of 2 will be applied to strike prices, market lots, and positions.
Summary
BSE has announced adjustments to Futures and Options contracts for HDFC Asset Management Company Ltd (Scrip Code: 541729, Derivatives Code: HAMC) following the company’s 1:1 bonus issue announcement. The adjustments will be implemented at end of day on November 25, 2025, with the ex-date being November 26, 2025. All existing F&O contracts will be adjusted using an adjustment factor of 2.
Key Points
- HDFC AMC has announced a 1:1 bonus issue (1 bonus share for every 1 existing share)
- Record date for bonus issue: November 26, 2025
- Adjustment factor: 2 [(1+1)/1]
- Ex-date for adjustments: November 26, 2025
- Adjustments will be made at end of day on November 25, 2025
- All available Futures and Options contracts on HAMC will be adjusted
Regulatory Changes
No regulatory changes. This circular implements existing SEBI guidelines for adjustment of Futures & Options contracts on announcement of corporate actions.
Compliance Requirements
For Trading Members:
- Ensure systems are updated to reflect adjusted contract specifications
- Inform clients about the adjustments to existing positions
- Contact designated Relationship Managers for clarifications
- Adjust risk management parameters based on new contract specifications
Important Dates
- November 10, 2025: Circular issued
- November 25, 2025: End of day - adjustments will be implemented
- November 26, 2025: Ex-date for bonus issue and adjusted contracts effective
Impact Assessment
Contract Adjustments:
- Strike Price: All strike prices will be divided by 2 (halved)
- Market Lot: Increased from 150 to 300 shares (doubled)
- Position: All positions will be multiplied by 2 (doubled)
- Futures Price: All futures prices will be divided by 2 (halved and rounded to nearest tick size)
Market Impact:
- High impact on all traders holding HDFC AMC derivatives positions
- Contract value remains economically neutral but operational adjustments required
- Increased margin requirements due to doubled market lot size (300 vs 150)
- All open positions will automatically adjust, no action required from traders
- System and risk management updates needed by trading members and participants
Liquidity Impact:
- Larger lot size may impact retail trader participation
- Institutional traders will need to adjust position sizing strategies
- Overall economic exposure per contract doubles due to lot size increase
Impact Justification
Significant corporate action requiring mandatory adjustments to all F&O contracts with doubled market lot size and halved strike prices, directly impacting all derivatives traders holding positions in HDFC AMC