Description
NSE Clearing announces adjustment methodology for F&O contracts in PETRONET due to dividend payment of Rs. 7/- per share, effective November 14, 2025.
Summary
NSE Clearing Limited has issued procedures for adjusting Futures and Options contracts in PETRONET LNG LIMITED due to a dividend payment of Rs. 7/- per share. The adjustment will be implemented on November 13, 2025 (last cum-dividend date) for futures contracts and November 14, 2025 (ex-dividend date) for options contracts. All open positions will be automatically adjusted by the clearing corporation.
Key Points
- Dividend amount: Rs. 7/- per share
- Last cum-dividend date: November 13, 2025
- Ex-dividend date: November 14, 2025
- Futures contracts will be marked-to-market on November 13, 2025, then carried forward at settlement price minus Rs. 7/-
- Option strike prices will be reduced by Rs. 7/- and adjusted to nearest tick size
- All existing positions will automatically move to corresponding adjusted strike prices
- Begin of day margins on November 14, 2025 will be computed based on adjusted carry forward values
Regulatory Changes
No new regulatory framework changes. This circular implements standard dividend adjustment procedures as per existing NSE guidelines for corporate actions affecting derivatives contracts.
Compliance Requirements
- Clearing members must note adjusted position details for futures and options contracts
- Members should update their systems to reflect adjusted strike prices and futures values
- Risk management systems must incorporate adjusted values for margin calculations
- Members are advised to inform their clients about the automatic adjustments
- Position reconciliation required post-adjustment on November 14, 2025
Important Dates
- November 10, 2025: NSE issued original circular (NSE/FAOP/71213) regarding the adjustment
- November 11, 2025: NSE Clearing circular issued (NCL/CMPT/71225)
- November 13, 2025: Last cum-dividend date; futures adjustment processing day
- November 14, 2025: Ex-dividend date; options strike price adjustment; normal trading resumes with adjusted values
Impact Assessment
Market Impact: High - All traders and investors with open F&O positions in PETRONET will see their positions automatically adjusted. Futures positions will show a Rs. 7/- reduction in carry forward value, while options positions will move to new adjusted strike prices.
Operational Impact: Clearing members must ensure their systems correctly reflect the adjustments. The futures example shows positions at Rs. 275/- adjusting to Rs. 268/-, while option strikes of 277.50 CE adjust to 270.50 CE and 280.00 PE adjusts to 273.00 PE.
Risk Management Impact: Begin of day margins on November 14, 2025 will be calculated on adjusted values, potentially affecting margin requirements. Intra-day margins will be computed based on actual traded prices post-adjustment.
Trading Impact: Normal mark-to-market settlement resumes from November 14, 2025. No disruption to trading expected, but participants should verify adjusted positions match their records.
Impact Justification
Mandatory adjustment of all F&O positions in PETRONET affects all market participants with open positions; requires immediate attention for risk management and margin calculations