Description
Early expiry of all existing F&O contracts on Hindustan Unilever Ltd on December 04, 2025, with reintroduction on December 05, 2025 following demerger of Kwality Wall's (India) Limited.
Summary
BSE will adjust all Futures and Options contracts on Hindustan Unilever Ltd (HULL) due to a scheme of arrangement involving the demerger of Kwality Wall’s (India) Limited. All existing F&O contracts will be forcibly expired on December 04, 2025, and derivatives trading will resume on December 05, 2025 (ex-date) after special pre-open session pricing is determined.
Key Points
- All existing Futures and Options contracts on HULL will expire on December 04, 2025
- Record date for scheme: December 05, 2025
- Ex-date for scheme: December 05, 2025
- Entitlement: 1 equity share of Kwality Wall’s (India) Limited for every 1 equity share held in Hindustan Unilever Ltd
- Derivatives contracts will be reintroduced from December 05, 2025
- New strikes based on special pre-open call auction pricing (minimum 7 ITM + 1 ATM + 7 OTM)
- Trading in F&O to commence at 10:00 AM on December 05, 2025 after underlying moves to normal market
Regulatory Changes
No regulatory framework changes. This is a standard corporate action adjustment procedure for scheme of arrangement under existing BSE derivatives rules.
Compliance Requirements
- Trading members must close or roll over all existing HULL F&O positions by December 04, 2025
- Trading members should inform their clients about the forced early expiry
- Members must be prepared for reintroduction of contracts on December 05, 2025
- Contact designated Relationship Managers for clarifications
Important Dates
- December 01, 2025: Notice date
- December 04, 2025: Last trading day for existing HULL F&O contracts (forced expiry)
- December 05, 2025: Record date and ex-date for scheme of arrangement
- December 05, 2025: Special pre-open call auction session in equity segment
- December 05, 2025, 10:00 AM: Reintroduction of HULL derivatives contracts for trading
Impact Assessment
Market Impact: High - All traders holding HULL F&O positions must exit or roll positions before December 04, 2025. The early expiry could lead to increased volatility and liquidity concerns in the final trading sessions.
Operational Impact: High - Trading members need to communicate urgently with clients, adjust risk management systems, and prepare for contract reintroduction with new strike prices based on post-demerger valuations.
Price Discovery: The special pre-open session on December 05, 2025 will determine new F&O strike prices, which may differ significantly from pre-demerger levels due to the separation of Kwality Wall’s business.
Impact Justification
Mandatory early expiry of all F&O contracts impacts all traders with open positions in HULL derivatives; requires immediate action before December 04, 2025