Description

BSE announces adjustments to F&O contracts for Kotak Mahindra Bank due to 5:1 stock split, effective January 14, 2026.

Summary

BSE has announced mandatory adjustments to all Futures and Options contracts for Kotak Mahindra Bank Ltd (Scrip Code: 500247, Derivatives Asset Code: KOTB) following the company’s 5:1 stock split. The record date is January 14, 2026, and adjustments will be implemented end-of-day on January 13, 2026. All strike prices will be divided by 5, market lot size will increase from 400 to 2000 shares, and existing positions will be multiplied by 5.

Key Points

  • Stock split ratio: 5:1 (One equity share of Rs. 5 subdivided into five shares of Rs. 1 each)
  • Adjustment factor: 5
  • Record date: January 14, 2026
  • Ex-date: January 14, 2026
  • Adjustment implementation: End of day on January 13, 2026
  • Strike prices will be divided by 5 (e.g., 2100 becomes 420, 2120 becomes 424)
  • Market lot increases from 400 to 2000 shares (multiplied by 5)
  • All existing positions will be multiplied by the adjustment factor
  • 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 following corporate actions.

Compliance Requirements

  • Trading members must account for adjusted strike prices, market lots, and positions
  • Members should contact designated Relationship Managers for clarifications
  • All F&O contracts on KOTB will be automatically adjusted by the exchange

Important Dates

  • January 13, 2026: Adjustments to be implemented end-of-day
  • January 14, 2026: Record date and ex-date for stock split

Impact Assessment

High Impact on Derivatives Trading:

  • All active F&O positions in Kotak Mahindra Bank will be adjusted automatically
  • Strike price adjustments will create new strike levels (existing strikes divided by 5)
  • Market lot size increase from 400 to 2000 shares significantly impacts capital requirements per contract
  • Position sizes will be multiplied by 5, affecting margin requirements
  • Traders and market makers must update systems and strategies to reflect new contract specifications
  • Increased market lot may improve liquidity but requires higher capital deployment per position

Impact Justification

Major corporate action requiring mandatory adjustments to all F&O contracts with significant impact on strike prices, market lots, and positions for active traders.