Description

BSE announces adjustments to F&O contracts of MCX India (MCXL) due to 5:1 stock split with Record Date January 02, 2026. Strike prices, market lots, and positions will be adjusted by factor of 5.

Summary

BSE has announced adjustments to all Futures and Options contracts of Multi Commodity Exchange of India Ltd (MCXL, Scrip Code: 534091) following the company’s stock split. The adjustment will be processed end of day on January 01, 2026, with the ex-date being January 02, 2026. The company is subdividing one equity share of Rs. 10 each into five equity shares of Rs. 2 each, resulting in a 5:1 split ratio and an adjustment factor of 5.

Key Points

  • Stock split ratio: 5:1 (one share of Rs. 10 becomes five shares of Rs. 2)
  • Adjustment factor: 5
  • Record Date: January 02, 2026
  • Ex-Date: January 02, 2026
  • Adjustment processing: End of day on January 01, 2026
  • Scrip Code: 534091
  • Derivatives Asset Code: MCXL
  • Existing market lot: 125 shares
  • Revised market lot: 625 shares (125 × 5)

Regulatory Changes

Adjustments are being made in compliance with SEBI guidelines for adjustment of Futures & Options contracts on announcement of corporate actions. The Exchange will make necessary adjustments for all available Futures & Options contracts on the underlying scrip MCXL.

Compliance Requirements

For Trading Members:

  • Understand the adjustment factor of 5 and its application to existing positions
  • Update systems and records to reflect adjusted strike prices, market lots, and positions
  • Contact designated Relationship Managers for clarifications

Adjustment Calculations:

  1. Strike Price: Divide old strike price by adjustment factor (5)

    • Example: 10,300 becomes 2,060; 10,400 becomes 2,080; 10,500 becomes 2,100; 10,600 becomes 2,120

  2. Market Lot: Multiply old market lot by adjustment factor (5)

    • 125 shares × 5 = 625 shares

  3. Position: Multiply old position by adjustment factor (5)

  4. Futures Price: Divide old futures price by adjustment factor (5), rounded to nearest tick size

Important Dates

  • January 01, 2026: Adjustments processed at end of day
  • January 02, 2026: Record Date for stock split and ex-date for F&O adjustments

Impact Assessment

High Impact on Derivatives Trading:

  • All existing F&O positions on MCXL will be automatically adjusted
  • Strike prices will be reduced to 1/5th of original values
  • Contract sizes will increase 5-fold from 125 to 625 shares per lot
  • Traders holding positions must account for the 5x multiplier effect on their positions
  • Price continuity maintained through proportional adjustments
  • No action required by position holders as adjustments are automatic
  • Potential for confusion if traders are unaware of the adjustment mechanism

Operational Impact:

  • Trading systems must be updated to reflect new strike prices and lot sizes
  • Risk management parameters need recalibration for the adjusted contract specifications
  • Margin requirements will be recalculated based on adjusted positions and lot sizes

Impact Justification

Mandatory adjustments to all outstanding F&O contracts on MCXL affecting strike prices, lot sizes, and positions. Traders must understand the 5x adjustment factor to avoid trading errors.