Description
NSE announces adjustment of futures and options contracts for Nestle India Limited due to 1:1 bonus issue with ex-date August 8, 2025.
Summary
NSE has announced adjustments to futures and options contracts for Nestle India Limited (NESTLEIND) following the company’s 1:1 bonus issue. The adjustments include revised market lot size, quantity freeze limits, and option strike prices effective from the ex-date of August 8, 2025.
Key Points
- Bonus ratio: 1:1 (one bonus share for every existing share)
- Face value: Re 1/-
- Ex-date and effective date: August 8, 2025
- Adjustment factor: 2
- Revised market lot: 500
- Revised quantity freeze limit: 20,000
- Strike prices and strike scheme provided in annexures
Regulatory Changes
- Contract specifications will be adjusted according to SEBI guidelines for corporate action adjustments
- Revised strike prices will be rounded to nearest tick size
- Lot sizes will be rounded to nearest integer
- Updated contract files will be made available on NSE extranet and website
Compliance Requirements
- Members must load updated contract and spread files before trading on ex-date
- Files available from faoftp/faocommon directory on Extranet server
- MII contract and spread files also available on NSE website
- Position adjustment methodology to be communicated separately by Clearing Corporation
Important Dates
- Ex-date: August 8, 2025
- Effective date: August 8, 2025
- Revised strike scheme effective: Trade date after ex-date (August 9, 2025)
Impact Assessment
Routine corporate action adjustment that will affect existing NESTLEIND derivatives positions. The 1:1 bonus issue doubles the number of shares, requiring proportional adjustment of contract terms. Strike prices are halved and lot size adjusted to maintain contract value equivalence. Traders and clearing members need to update systems with new contract specifications.
Impact Justification
Routine corporate action adjustment affecting existing derivatives contracts with clear procedures