Description
NSE announces adjustment procedures for F&O contracts in Computer Age Management Services Limited (CAMS) following a 5:1 face value split from Rs.10 to Rs.2 per share, effective December 4, 2025.
Summary
NSE Clearing Limited has announced the adjustment procedure for Futures and Options contracts in Computer Age Management Services Limited (CAMS) following a corporate action of face value split from Rs.10 per share to Rs.2 per share. The adjustment factor is 5, with ex-date set as December 4, 2025. All open F&O positions existing after end of day on December 4, 2025 will be adjusted according to prescribed formulas for positions, prices, and strike prices.
Key Points
- Adjustment factor: 5 (reflecting 5:1 split ratio)
- Ex-date for corporate action: December 4, 2025
- Futures positions will be multiplied by adjusted market lot
- Futures prices will be divided by adjustment factor (5)
- Options strike prices will be divided by adjustment factor (5)
- Options positions will be multiplied by adjusted market lot
- Adjusted positions carry forward at adjusted value to avoid rounding differences
- Normal mark-to-market procedures resume from December 5, 2025
- Begin of day margins on December 5, 2025 computed based on adjusted carry forward value
Regulatory Changes
This circular implements standard corporate action adjustment procedures as per:
- NSCCL Byelaws pertaining to Clearing and Settlement of deals
- SEBI circular SMDRP/DC/CIR-8/01 dated June 21, 2001
- NSE Circular no. 043 (Download no. NCL/CMPT/67750) dated April 29, 2025
- NSE Circular no. 197/2025 (Download no. NSE/FAOP/71389) dated November 20, 2025
Compliance Requirements
For Clearing Members and Trading Members:
- Understand position adjustment calculations for all open CAMS F&O positions
- Verify adjusted positions after December 4, 2025
- Ensure adequate margins for adjusted positions from December 5, 2025
- Update risk management systems to account for new contract specifications
- Communicate changes to clients holding CAMS derivatives positions
Adjustment Calculations:
Futures Contracts:
- Adjusted Positions = Pre-adjusted contracts × Adjusted market lot
- Adjusted Futures Price = Settlement price on Dec 4, 2025 ÷ 5
- Adjusted Value = Pre-adjusted quantity × Pre-adjusted settlement price
- Example: 150 long contracts become 750 long contracts (150 × 5)
Options Contracts:
- Adjusted Strike Price = Old strike price ÷ 5
- Adjusted Positions = Pre-adjusted contracts × Adjusted market lot
Important Dates
- November 21, 2025: Circular issued
- December 4, 2025: Ex-date for face value split; positions adjusted after end of day; mark-to-market settlement based on daily settlement price
- December 5, 2025: Normal mark-to-market procedures resume; begin of day margins computed on adjusted carry forward value
Impact Assessment
Market Impact: High - All participants with open CAMS F&O positions must account for 5x multiplication in contract quantities and corresponding division of prices/strikes by 5.
Operational Impact: High - Trading and clearing members must update systems, recalculate margins, and adjust risk parameters. Position reporting and client statements will reflect adjusted quantities.
Liquidity Impact: Medium - Adjusted market lot sizes per NSE circular 197/2025 may affect trading dynamics and order placement strategies.
Risk Management Impact: High - Margin requirements will be recalculated based on adjusted carry forward values. Intra-day margin calculations will use adjusted parameters from December 5, 2025 onwards.
Price Impact: Neutral - Adjustment methodology designed to maintain economic value of positions through proportional adjustments to quantities and prices.
Impact Justification
Directly impacts all open F&O positions in CAMS with specific adjustment calculations required. Affects position sizes, strike prices, and settlement procedures for all market participants holding CAMS derivatives.