Description

BSE announces adjustments to F&O contracts of MCX (MCXL) due to 1:5 stock split with record date January 02, 2026 and ex-date January 02, 2026.

Summary

BSE has announced adjustments to all Futures and Options contracts of Multi Commodity Exchange of India Ltd (Scrip Code: 534091, Derivatives Asset Code: MCXL) following the company’s stock split. The company will subdivide one equity share of Rs. 10 each into five equity shares of Rs. 2 each, with a record date of January 02, 2026. BSE will implement necessary adjustments to all available F&O contracts on January 01, 2026 (end of day), with the ex-date being January 02, 2026. The adjustment factor for this 5:1 stock split is 5.

Key Points

  • Stock split ratio: 1:5 (One share of Rs. 10 divided into Five shares of Rs. 2)
  • Adjustment factor: 5
  • Record date: January 02, 2026
  • Ex-date: January 02, 2026
  • Adjustments effective: End of day January 01, 2026
  • All existing F&O contracts on MCXL will be adjusted
  • Strike prices will be divided by 5
  • Market lot will be multiplied by 5 (from 125 to 625)
  • Positions will be multiplied by 5
  • Futures prices will be divided by 5 and rounded to nearest tick size

Regulatory Changes

No new regulatory changes. This circular implements existing SEBI guidelines for adjustment of Futures & Options contracts on announcement of corporate actions, specifically stock splits.

Compliance Requirements

For Trading Members:

  • Take note of automatic adjustments to all MCXL F&O contracts effective end of day January 01, 2026
  • Update systems and client communications regarding revised contract specifications
  • Ensure client positions reflect the adjusted parameters post-adjustment
  • Contact designated Relationship Managers for clarifications

For Market Participants:

  • Be aware of revised strike prices (divided by 5)
  • Note increased market lot size from 125 to 625 shares
  • Understand that existing positions will be multiplied by 5
  • Account for adjusted futures prices in trading strategies

Important Dates

  • January 01, 2026: Adjustments to F&O contracts will be implemented (end of day)
  • January 02, 2026: Ex-date for stock split; Record date for subdivision

Impact Assessment

Market Impact: High impact on all traders holding MCXL derivatives positions. The 5:1 stock split requires comprehensive adjustments across all contract parameters.

Operational Impact:

  • Strike prices reduced by factor of 5 (e.g., 10300 becomes 2060, 10400 becomes 2080)
  • Market lot increased 5x from 125 to 625 shares per contract
  • All open positions multiplied by 5
  • Futures prices divided by 5 and rounded to nearest tick
  • Total contract value remains economically equivalent post-adjustment

Trading Impact: Traders must adjust their strategies and risk management parameters to account for the new contract specifications. While the economic value of positions remains unchanged, the nominal values and quantities will differ significantly. This may affect margin requirements and position limits based on the revised market lot size.

Impact Justification

Material corporate action affecting all outstanding F&O contracts on MCXL requiring mandatory adjustments to strike prices, market lots, and positions with significant impact on derivative traders.