Description

BSE announces adjustments to F&O contracts for MCX India (MCXL) due to 1:5 stock split with record date January 2, 2026. Strike prices will be divided by 5 and market lot multiplied by 5.

Summary

BSE has announced mandatory adjustments to all Futures and Options contracts for Multi Commodity Exchange of India Ltd (MCXL, Scrip Code: 534091) following the company’s stock split announcement. The company will subdivide one equity share of Rs. 10 into five equity shares of Rs. 2 each. All F&O contract adjustments will be implemented at end of day on January 1, 2026, with the ex-date being January 2, 2026.

Key Points

  • Stock split ratio: 1:5 (one share of Rs. 10 split into five shares of Rs. 2 each)
  • Adjustment factor: 5 (calculated as 5/1)
  • Record date: January 2, 2026
  • Ex-date: January 2, 2026
  • Adjustments effective: End of day January 1, 2026
  • Applies to: All available Futures & Options contracts on MCXL (Derivatives Asset Code: MCXL)
  • Strike prices: Divided by adjustment factor (5)
  • Market lot: Multiplied by adjustment factor (5) - increases from 125 to 625
  • Positions: Multiplied by adjustment factor (5)
  • Futures price: Divided by adjustment factor (5) and rounded to nearest tick size

Regulatory Changes

The adjustments are made in compliance with SEBI guidelines for adjustment of Futures & Options Contracts on announcement of corporate actions. The Exchange will implement these changes to maintain fair trading conditions and contract integrity following the stock split.

Compliance Requirements

  • Trading members must note the revised contract specifications effective January 2, 2026
  • All existing positions will be automatically adjusted by the exchange
  • Members should update their systems to reflect new strike prices and market lot sizes
  • Risk management systems must be updated to account for adjusted position sizes
  • Members should contact designated Relationship Managers for clarifications

Important Dates

  • December 26, 2025: Circular announcement date
  • January 1, 2026: Adjustments to be implemented at end of day
  • January 2, 2026: Record date and ex-date for stock split

Impact Assessment

Market Impact: High - affects all traders and market makers holding F&O positions in MCXL. The 5x adjustment factor will significantly change contract parameters.

Operational Impact: Trading members must update systems and risk models to accommodate:

  • New strike price levels (example: 10300 becomes 2060, 10400 becomes 2080)
  • Increased market lot from 125 to 625 shares
  • 5x multiplication of existing positions
  • Adjusted futures prices

Liquidity Impact: The stock split and corresponding F&O adjustments may improve accessibility and liquidity by reducing per-contract value and creating more granular strike price intervals.

Risk Management: Position limits and margin requirements will be recalculated based on adjusted contract specifications. Traders should review exposure limits and margin availability before ex-date.

Impact Justification

Mandatory F&O contract adjustments affecting all derivative positions in MCXL; requires immediate action from traders holding positions before ex-date