Description
NSE announces adjustments to HINDUNILVR futures and options contracts due to demerger scheme, with all existing contracts expiring on December 4, 2025.
Summary
NSE has announced adjustments to Futures and Options contracts of Hindustan Unilever Limited (HINDUNILVR) following a Scheme of Arrangement (Demerger). The ex-date and effective date is Friday, December 5, 2025. All existing F&O contracts with expiry dates of December 30, 2025, January 27, 2026, and February 24, 2026 will be terminated early on Thursday, December 4, 2025. New derivative contracts will be introduced from the ex-date based on the adjusted underlying security.
Key Points
- Corporate action type: Scheme of Arrangement (Demerger)
- Ex-date and effective date: Friday, December 5, 2025
- Early expiry of all existing contracts: Thursday, December 4, 2025
- Affected contract months: December 2025, January 2026, and February 2026 expiries
- Option strike range will be announced one day prior to ex-date based on SPOS session price discovery
- New derivatives contracts to be introduced from ex-date onwards
- Settlement methodology to be separately intimated by Clearing Corporations
Regulatory Changes
This circular is issued in pursuance of SEBI guidelines for adjustments to futures and options contracts on announcement of corporate actions. The adjustment follows standard procedures for derivative contracts when the underlying security undergoes a demerger.
Compliance Requirements
- All members must note the early expiry of existing F&O contracts on December 4, 2025
- Members should refer to adjustment details at: https://www.nseindia.com/products-services/equity-derivatives-corporate-actions-adjustments
- Members must prepare for new contract introduction from December 5, 2025
- Settlement procedures as per Clearing Corporation’s separate intimation must be followed
Important Dates
- November 27, 2025: Circular announcement date
- December 4, 2025 (Thursday): Early expiry of all existing F&O contracts (normal expiries: Dec 30, 2025, Jan 27, 2026, Feb 24, 2026)
- December 5, 2025 (Friday): Ex-date and effective date; new derivative contracts to be introduced
- One day prior to ex-date: Option strike range announcement based on SPOS session
Impact Assessment
Market Impact: High - All open positions in HINDUNILVR futures and options across three contract months must be closed or rolled over before December 4, 2025. This creates potential volatility and liquidity concentration.
Operational Impact: Traders and market participants holding positions in affected contracts need to adjust their strategies, close positions, or prepare for early settlement. Risk management systems must account for the early expiry date instead of standard monthly expiries.
Trading Impact: There will be a one-day gap in derivative trading (December 4 expiry vs December 5 re-introduction), during which only the underlying stock can be traded. Post-demerger, new contracts will reflect the adjusted corporate structure, requiring participants to understand the new terms and pricing basis.
Impact Justification
Major corporate action requiring early expiry of all existing F&O contracts and re-introduction of new contracts, affecting all derivative traders in HINDUNILVR