Description

BSE announces adjustment of all F&O contracts on Vedanta Ltd (VEDL) due to a Scheme of Arrangement (Demerger), with existing contracts expiring on April 29, 2026 and new contracts introduced from April 30, 2026.

Summary

BSE has announced mandatory adjustments to all Futures & Options contracts on Vedanta Ltd (Derivatives Asset Code: VEDL) in pursuance of the Scheme of Arrangement (Demerger) previously notified via Notice No. 20260423-41 dated April 23, 2026. Vedanta Ltd has fixed May 01, 2026 as the Record Date for the scheme. All existing F&O contracts will be early-expired on April 29, 2026, and new contracts will be introduced from April 30, 2026 based on a special pre-open session price.

Key Points

  • All existing Futures & Options contracts on Vedanta Ltd (VEDL) will expire on April 29, 2026 (early expiry ahead of normal schedule)
  • No pre-open session will be conducted in Vedanta Futures on the ex-date (April 30, 2026)
  • New Derivatives contracts on Vedanta Ltd will be introduced from April 30, 2026 (the ex-date of the underlying)
  • Strike availability on April 30, 2026: minimum 7 In-the-Money, 1 At-the-Money, and 7 Out-of-the-Money strikes, available for trading from 10:00 AM
  • Record Date for the Scheme of Arrangement is May 01, 2026
  • This notice is addressed to Trading Members of BSE

Regulatory Changes

The Exchange is exercising its authority to adjust F&O contracts in response to a corporate action (Scheme of Arrangement / Demerger). This results in:

  • Premature termination of all open F&O series on VEDL as of April 29, 2026
  • Reintroduction of fresh derivatives contracts from April 30, 2026 based on the adjusted underlying price discovered in the special pre-open equity session

Compliance Requirements

  • Trading Members must note the early expiry date of April 29, 2026 for all VEDL F&O contracts and inform their clients accordingly
  • Members should plan positions and margin requirements in light of the early contract expiry
  • Trading Members with queries are advised to contact their designated Relationship Managers at BSE

Important Dates

DateEvent
April 23, 2026Original Notice No. 20260423-41 on Scheme of Arrangement issued
April 24, 2026This adjustment notice (20260424-33) issued
April 29, 2026Early expiry of all existing VEDL Futures & Options contracts
April 30, 2026Ex-date of underlying; new VEDL derivatives contracts introduced; new strikes available from 10:00 AM
May 01, 2026Record Date for Vedanta Ltd Scheme of Arrangement (Demerger)

Impact Assessment

This circular has a high market and operational impact for derivatives traders:

  • Position Holders: All open positions in VEDL F&O will be forcibly settled/expired on April 29, 2026, potentially before traders intended to close them
  • Market Disruption: Absence of a pre-open session for VEDL Futures on April 30, 2026 changes the typical trading day structure
  • Pricing Reset: New contracts will be priced based on the special pre-open session in the equity segment, reflecting the post-demerger value of Vedanta Ltd
  • Strike Recalibration: Fresh OTM/ATM/ITM strikes will be issued at 10:00 AM on April 30, 2026, providing liquidity across the options chain
  • Corporate Action Risk: Traders holding positions through April 29 must be aware of the demerger’s impact on the underlying value and adjust hedging strategies accordingly

Impact Justification

Early expiry of all existing F&O contracts and reintroduction of new contracts due to a demerger materially disrupts derivatives trading in Vedanta Ltd, requiring immediate action from trading members.