Description

BSE announces adjustments to F&O contracts for Nuvama Wealth Management Ltd due to 5:1 stock split with record date December 26, 2025.

Summary

BSE has announced mandatory adjustments to all Futures and Options contracts for Nuvama Wealth Management Ltd (Scrip Code: 543988, Derivatives Code: NWML) following the company’s stock split announcement. The adjustment will be implemented at end of day on December 24, 2025, with the ex-date being December 26, 2025. The stock split ratio is 5:1 (one equity share of Rs. 10 subdivided into five equity shares of Rs. 2 each), resulting in an adjustment factor of 5 for all derivative contracts.

Key Points

  • Stock split ratio: 5:1 (one share of Rs. 10 split into five shares of Rs. 2 each)
  • Record date: December 26, 2025
  • Adjustment implementation: End of day December 24, 2025
  • Ex-date: December 26, 2025
  • Adjustment factor: 5
  • All existing F&O contracts will be adjusted automatically by the exchange
  • Affects strike prices, market lot sizes, positions, and futures prices

Regulatory Changes

Adjustments are made in compliance with SEBI guidelines for F&O contract adjustments on corporate actions. The exchange will apply the following formula-based adjustments:

Strike Price Adjustment: Old strike price ÷ 5 (adjustment factor)

  • Example: Strike price of 7200 becomes 1440
  • Example: Strike price of 7500 becomes 1500

Market Lot Adjustment: Old market lot × 5 (adjustment factor)

  • Existing market lot: 100
  • Revised market lot: 500 (100 × 5)

Position Adjustment: Old position × 5 (adjustment factor)

Futures Price Adjustment: Old futures price ÷ 5 (adjustment factor), rounded to nearest tick size

Compliance Requirements

  • Equity Derivatives Segment members must note the automatic adjustments
  • Trading members should contact designated Relationship Managers for clarifications
  • All positions will be automatically adjusted by the exchange - no member action required
  • Members should inform their clients about the adjustments to their F&O positions

Important Dates

  • December 11, 2025: Circular notification date
  • December 24, 2025: End of day - adjustments implemented by BSE
  • December 26, 2025: Record date and ex-date for stock split

Impact Assessment

Market Impact: High - affects all outstanding F&O contracts in NWML across all expiries. The 5:1 split significantly changes contract parameters.

Operational Impact: High for derivatives traders holding NWML positions. Strike prices will be divided by 5 (making them more granular), while lot sizes will increase 5-fold from 100 to 500 shares per contract. This increases the notional value per contract despite lower per-share prices.

Position Impact: All existing positions will be multiplied by 5, maintaining equivalent economic exposure but with different contract specifications. Traders must recalibrate their risk management and margin requirements based on the new lot size of 500 shares.

Impact Justification

Significant contract adjustments required for all F&O positions in NWML with 5x multiplier affecting strike prices, lot sizes, and positions