Description

BSE announces adjustments to F&O contracts in ITC Ltd due to interim dividend of Rs. 6.50 per share, effective February 4, 2026.

Summary

BSE has announced mandatory adjustments to all 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. All strike prices for options contracts will be reduced by Rs. 6.50, and futures contracts will be adjusted using the reference rate less the dividend amount.

Key Points

  • ITC Ltd has declared an interim dividend of Rs. 6.50 per equity share for FY 2025-26
  • Record Date for dividend payment: February 4, 2026
  • Adjustment date: February 3, 2026 (Tuesday)
  • Ex-date: February 4, 2026 (Wednesday)
  • All existing Futures and Options contracts on ITC Ltd will be adjusted
  • Options: Full dividend value (Rs. 6.50) deducted from all strike prices
  • Futures: Adjusted price = Reference rate minus Rs. 6.50
  • Reference rate will be the daily mark-to-market settlement price on February 3, 2026

Regulatory Changes

This adjustment follows Exchange Notice No. 20180710-26 regarding Review of Adjustment of corporate actions for stock options and aligns with SEBI Master Circular No. SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016.

Compliance Requirements

  • Trading members must apply adjusted strike prices for options contracts from February 4, 2026
  • Adjusted futures prices must be used as base rate/previous close for trading from February 4, 2026
  • Members should contact their respective relationship managers for further clarification
  • All derivative positions in ITC Ltd must reflect the dividend adjustment

Important Dates

  • February 1, 2026: Circular issued
  • February 3, 2026: Adjustment implementation date (contracts adjusted at end of day)
  • February 4, 2026: Ex-dividend date and Record Date; adjusted prices effective for trading

Impact Assessment

High Impact on Derivatives Trading: All traders holding F&O positions in ITC Ltd will see immediate price adjustments. Options strike prices will be reduced by Rs. 6.50 across all series, potentially moving existing positions in or out of the money. Futures traders must account for the adjusted base price in their trading strategies. The adjustment is mandatory and automatic, affecting all open positions and requiring recalculation of profit/loss positions and risk management parameters.

Impact Justification

Mandatory adjustments to all F&O contracts in ITC Ltd affecting strike prices and futures pricing, requiring immediate action by derivatives traders.