Description

BSE announces adjustment of F&O contracts in ITC Ltd (ITCL) for interim dividend of Rs. 6.50 per share with ex-date February 4, 2026.

Summary

BSE has announced adjustments to Futures and Options contracts in ITC Ltd (Derivative Asset Code: ITCL, Scrip Code: 500875) following the company’s declaration of an interim dividend of Rs. 6.50 per equity share for FY 2025-26. The adjustments will be implemented on February 3, 2026, with the ex-date being February 4, 2026.

Key Points

  • ITC Ltd has fixed February 4, 2026 as the Record Date for interim dividend payment
  • Interim dividend declared at Rs. 6.50 per equity share for financial year 2025-26
  • Adjustments will be made to all available F&O contracts on February 3, 2026
  • Ex-date for the dividend is February 4, 2026
  • Both Options and Futures contracts will be adjusted differently

Regulatory Changes

This adjustment is in pursuance of:

  • Exchange notice number 20180710-26 regarding Review of Adjustment of corporate actions for stock options
  • SEBI Master circular No SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016

Compliance Requirements

For Options Contracts:

  • Full dividend value of Rs. 6.50 will be deducted from all strike prices
  • Deduction to be made at end of February 3, 2026
  • Adjusted strike prices will be available for trading from February 4, 2026

For Futures Contracts:

  • Adjusted futures price = Reference rate - Rs. 6.50
  • Reference rate will be the daily mark-to-market settlement price on February 3, 2026
  • Adjusted rate will apply as base rate/previous close for trading on February 4, 2026

Important Dates

  • February 1, 2026: Circular issue date
  • February 3, 2026: Adjustment date for F&O contracts
  • February 4, 2026: Ex-date for dividend; adjusted contracts available for trading
  • February 4, 2026: Record Date for interim dividend payment

Impact Assessment

Market Impact: Traders and investors holding F&O positions in ITC Ltd need to account for the dividend adjustment in their positions. The Rs. 6.50 dividend is a material amount that will affect:

  • All strike prices in Options contracts (reduced by Rs. 6.50)
  • Futures contract pricing (adjusted down by Rs. 6.50)

Operational Impact: Trading members must update their systems and inform clients about the adjusted strike prices and futures base prices effective February 4, 2026. Members are advised to contact their relationship managers for further details on implementation.

Impact Justification

Standard corporate action adjustment affecting F&O contracts of major stock ITC, requiring strike price and futures price adjustments for interim dividend