Description
NSE Clearing announces adjustment methodology for ONGC F&O contracts on ex-dividend date November 14, 2025, with Rs. 6 dividend adjustment to futures prices and option strike prices.
Summary
NSE Clearing Limited has announced the adjustment methodology for Futures and Options contracts in Oil & Natural Gas Corporation Limited (ONGC) due to dividend distribution. On November 13, 2025 (last cum-dividend date), futures contracts will be marked-to-market at daily settlement price, then carried forward at settlement price less Rs. 6 (dividend amount). For options contracts, Rs. 6 will be deducted from all cum-dividend strike prices on the ex-dividend date and adjusted to nearest tick size. This circular implements the adjustment procedures outlined in NSE Circular No. 191/2025 dated November 11, 2025.
Key Points
- Futures contracts adjustment based on reference rate on November 13, 2025 (last cum-dividend date)
- Daily settlement price reduced by Rs. 6 dividend amount for carry forward
- Options strike prices reduced by Rs. 6 and adjusted to nearest tick size
- All existing positions automatically transferred to corresponding adjusted strike prices
- Normal mark-to-market procedures resume from November 14, 2025 (ex-dividend date)
- Begin of day margins on November 14, 2025 computed based on adjusted carry forward value
- Intra-day margins calculated using relevant traded prices post-adjustment
Regulatory Changes
No permanent regulatory changes. This circular implements standard dividend adjustment procedures for F&O contracts as per existing NSE framework.
Compliance Requirements
For All Members:
- Acknowledge and implement the Rs. 6 dividend adjustment in ONGC F&O contracts
- Ensure systems account for adjusted futures carry forward values from November 14, 2025
- Update strike price mappings for options contracts post-adjustment
- Reconcile positions after adjustment to verify accuracy
- Ensure margin calculations reflect adjusted values
Futures Contracts:
- Mark-to-market processing on November 13, 2025 at daily settlement price
- Carry forward open positions at (daily settlement price - Rs. 6)
- Example: Position valued at Rs. 250.00 becomes Rs. 244.00 post-adjustment
Options Contracts:
- Strike price adjustment by deducting Rs. 6, rounded to nearest tick size
- Example: Strike 250.00 CE becomes 244.00 CE; Strike 252.50 PE becomes 246.50 PE
- All positions in existing strikes automatically transferred to new adjusted strikes
Important Dates
- November 11, 2025: NSE issued parent circular (NSE/FAOP/71231)
- November 12, 2025: NSE Clearing circular issued (NCL/CMPT/71244)
- November 13, 2025: Last cum-dividend date; futures contracts marked-to-market and adjusted
- November 14, 2025: Ex-dividend date; normal trading and settlement resumes with adjusted values; begin of day margins computed on adjusted carry forward value
Impact Assessment
Market Impact: High - affects all outstanding ONGC futures and options positions across all expiries (November, December, January contracts mentioned in examples). The Rs. 6 dividend adjustment will cause immediate P&L impact for all position holders on November 13, 2025.
Operational Impact: High - clearing members must ensure their systems correctly process the adjustment. Futures positions will show automatic value reduction of Rs. 6 per share (Rs. 13,500 per lot for 2,250 quantity). Options positions will be remapped to new strike prices, requiring strike price master updates.
Risk Management Impact: Medium - margin calculations will be based on adjusted values from November 14, 2025. Members should monitor margin requirements as begin of day margins will reflect adjusted carry forward values, potentially triggering margin calls or releasing excess margins.
Trading Impact: Medium - ex-dividend trading from November 14, 2025 will be at adjusted levels. Market participants should note that futures prices will not directly reflect spot price relationship until market forces equilibrate post-adjustment.
Impact Justification
Mandatory adjustment affecting all ONGC F&O positions with specific mark-to-market implications and strike price modifications requiring immediate action by all members