Description

NSE Clearing announces adjustment procedures for F&O contracts in PATANJALI FOODS LIMITED following a 2:1 bonus issue, effective September 11, 2025.

Summary

NSE Clearing has announced adjustment procedures for all Futures and Options contracts in PATANJALI FOODS LIMITED due to a 2:1 bonus issue. The adjustment factor of 3 will be applied to all open positions, with the ex-date set for September 11, 2025. All existing positions will be automatically adjusted including position quantities, strike prices, and market lots.

Key Points

  • Bonus issue ratio: 2:1 (2 bonus shares for every 1 share held)
  • Adjustment factor: 3
  • Ex-date for corporate action: September 11, 2025
  • All open F&O positions as of September 10, 2025 end-of-day will be adjusted
  • Futures positions will be multiplied by adjusted market lot
  • Futures prices will be divided by adjustment factor (3)
  • Options strike prices will be divided by adjustment factor (3)

Regulatory Changes

No new regulatory changes announced. Adjustments follow existing SEBI circular SMDRP/DC/CIR-8/01 dated June 21, 2001, and NSE Clearing Byelaws pertaining to clearing and settlement of deals.

Compliance Requirements

  • All clearing members must ensure their systems are updated to reflect adjusted positions
  • Trading members need to communicate adjusted positions to clients
  • Mark-to-market settlements on September 10, 2025 based on daily settlement price
  • Begin-of-day margins on September 11, 2025 to be computed based on adjusted carry forward value
  • Intra-day margins to be calculated based on traded prices post-adjustment

Important Dates

  • September 10, 2025: Last trading day with pre-adjusted contracts
  • September 10, 2025: End-of-day positions to be marked-to-market
  • September 11, 2025: Ex-date for bonus issue and adjusted contracts begin trading
  • September 11, 2025 onwards: Normal daily mark-to-market procedures resume

Impact Assessment

High market impact as all existing F&O positions in PATANJALI FOODS LIMITED will undergo mandatory adjustment. Traders holding positions will see their contract quantities triple (300 contracts become 900) while prices and strike prices reduce to one-third. This ensures economic value remains unchanged while accounting for the bonus shares. Risk management systems and trading strategies may need recalibration to account for the adjusted parameters.

Impact Justification

Critical operational changes affecting all open F&O positions in PATANJALI requiring immediate trader attention and system adjustments