Description

BSE announces adjustments to F&O contracts in ITC Ltd due to 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) due to an interim dividend payment. The company will pay Rs. 6.50 per equity share for FY 2025-26, with a record date of February 4, 2026. All F&O contracts will be adjusted on February 3, 2026, effective from February 4, 2026.

Key Points

  • ITC Ltd declares interim dividend of Rs. 6.50 per equity share for FY 2025-26
  • Record date: February 4, 2026 (ex-date)
  • Adjustments to be made on February 3, 2026
  • Options: Rs. 6.50 deducted from all strike prices
  • Futures: Reference rate less Rs. 6.50 applied as base rate for February 4, 2026
  • Notice issued pursuant to Exchange notice 20180710-26 and SEBI circular SEBI/HO/MRD/DP/CIR/P/2016/135

Regulatory Changes

No new regulatory changes. This adjustment follows existing SEBI Master Circular No SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016, and BSE Exchange notice number 20180710-26 regarding review of adjustment of corporate actions for stock options.

Compliance Requirements

  • Trading members must note the adjusted strike prices and futures base rates effective February 4, 2026
  • Members should contact their respective relationship managers for further details
  • All open F&O positions in ITC Ltd will be automatically adjusted by the exchange

Important Dates

  • February 1, 2026: Notice date
  • February 3, 2026: Adjustment date for all F&O contracts (last cum-dividend day)
  • February 4, 2026: Ex-dividend date; adjusted contracts effective for trading
  • Record Date: February 4, 2026 (for dividend eligibility)

Impact Assessment

Market Impact: Medium - This adjustment affects all active Futures and Options contracts in ITC Ltd, one of India’s major stocks. Traders holding positions will see automatic adjustments to their contracts.

Operational Impact:

  • Options traders: All strike prices will be reduced by Rs. 6.50, maintaining the intrinsic value of positions
  • Futures traders: Base price for February 4 trading will be the February 3 settlement price minus Rs. 6.50
  • Standard procedure that derivative traders in ITC are familiar with; minimal operational disruption expected

Trading Considerations: Traders should be aware of the adjusted strike prices and base rates when placing orders on and after February 4, 2026.

Impact Justification

Standard corporate action adjustment affecting F&O contracts for a major stock; impacts active derivative traders but follows established procedures.