Description
NSE Clearing announces adjustment of F&O contracts in COALINDIA due to dividend distribution of Rs. 10.25 per share, effective November 4, 2025.
Summary
NSE Clearing Limited has issued instructions for mandatory adjustment of all Futures and Options contracts in COAL INDIA LIMITED (COALINDIA) following the company’s dividend declaration. All futures positions will be adjusted by reducing the reference price by Rs. 10.25 (dividend amount) on November 3, 2025 (last cum-dividend date). Options strike prices will be reduced by Rs. 10.25 and adjusted to the nearest tick size effective November 4, 2025 (ex-dividend date). This circular implements NSE Circular No. 182/2025 dated October 31, 2025.
Key Points
- Dividend amount: Rs. 10.25 per share
- Last cum-dividend date: November 3, 2025
- Ex-dividend date: November 4, 2025
- All futures contracts will be marked-to-market on November 3, 2025 at daily settlement price
- Open positions will be carried forward at settlement price minus Rs. 10.25
- All options strike prices will be reduced by Rs. 10.25 and adjusted to nearest tick size
- Existing positions in old strike prices will automatically transfer to new adjusted strike prices
- Normal mark-to-market procedures resume from November 4, 2025
- Begin of day margins on November 4, 2025 will be based on adjusted carry forward values
Regulatory Changes
No new regulatory framework introduced. This circular implements standard corporate action adjustment procedures as per existing NSE F&O segment rules for dividend distributions.
Compliance Requirements
For Clearing Members:
- Ensure systems are updated to reflect adjusted futures values (settlement price minus Rs. 10.25) from November 4, 2025
- Verify adjusted options strike prices post-adjustment
- Reconcile all COALINDIA F&O positions after adjustment
- Compute margins based on adjusted carry forward values
For Trading Members:
- Inform clients about the mandatory adjustment in their F&O positions
- Update client position statements with adjusted values
- Ensure trading systems reflect new strike prices for options
For Investors:
- All long and short positions in COALINDIA futures will be revalued automatically
- Options positions will migrate to new adjusted strike prices
- No action required from position holders
Important Dates
- November 3, 2025: Last cum-dividend date; mark-to-market settlement at unadjusted prices, followed by adjustment
- November 4, 2025: Ex-dividend date; trading commences with adjusted prices; begin of day margins computed on adjusted values
Impact Assessment
Market Impact:
- All outstanding COALINDIA futures and options contracts across all expiries (November 2025, December 2025, January 2026 and beyond) will be adjusted
- Futures contract values will decrease by Rs. 10.25 per share
- Example: A position valued at Rs. 390.00 will be adjusted to Rs. 379.75
- Options strike prices will shift downward (e.g., 385.00 CE becomes 374.75 CE, 387.50 PE becomes 377.25 PE)
Operational Impact:
- Automatic adjustment process ensures continuity of positions without manual intervention
- Margin requirements will be recalculated based on adjusted values
- Position valuations and P&L calculations will reflect the dividend adjustment
- Intraday margins will be computed based on traded prices post-adjustment
Risk Management:
- The adjustment methodology ensures fair valuation reflecting the dividend payout
- Maintains market integrity by preventing arbitrage opportunities around corporate actions
- All market participants are treated uniformly through systematic adjustment
Impact Justification
Mandatory adjustment affecting all F&O positions in COALINDIA with immediate effect on November 4, 2025. Impacts futures pricing and options strike prices due to Rs. 10.25 dividend.