Description
All existing monthly F&O contracts in HINDUNILVR with expiry dates post December 04, 2025 will expire on December 04, 2025 and result in physical settlement.
Summary
NSE Clearing Limited has announced the adjustment of Futures & Options contracts for HINDUSTAN UNILEVER LIMITED (HINDUNILVR). All existing monthly contracts with expiry dates after December 04, 2025 will be prematurely expired on December 04, 2025. All positions will cease to exist and result in physical settlement, which will be netted with Capital Market obligations and settled on December 05, 2025 (T+1 day).
Key Points
- All existing monthly F&O contracts in HINDUNILVR with expiry post December 04, 2025 shall expire on December 04, 2025
- Settlement price will be based on HINDUNILVR’s settlement price in the Capital Market segment on December 04, 2025
- Final MTM settlement pay in/pay out scheduled for December 05, 2025 (T+1 day)
- All futures and options positions will result in physical settlement
- Physical obligations will be netted with Capital Market obligations for trade date December 04, 2025
- Net obligations will be settled under Normal market type in settlement number 2025231
- Delivery shortages will be directly closed out
- Additional reports F_CA_PS03 and F_CA_PS04 will be available on December 04, 2025
Regulatory Changes
This circular is issued in pursuance of:
- NCL Byelaws pertaining to Clearing and Settlement of deals
- SEBI circular SMDRP/DC/CIR-8/01 dated June 21, 2001
- Consolidated Circular no. 043/2025 (NCL/CMPT/67750) dated April 29, 2025
- Circular no. 201/2025 (NSE/FAOP/71509) dated November 27, 2025
- Circular no. 67/2018 (NCCL/CMPT/38039) dated June 15, 2018
- Circular no. 008/2023 (NCL/CMPT/55330) dated January 20, 2023
Compliance Requirements
- Members must prepare for physical settlement of all HINDUNILVR F&O positions
- Ensure adequate funds/securities for settlement obligations by December 05, 2025
- Review position reports to be downloaded on December 04, 2025
- Monitor additional physical settlement reports (F_CA_PS03 and F_CA_PS04)
- Manage delivery obligations as any shortages will be directly closed out
- Contact NSE Clearing at 18002660050 (IVR Option 2) or fao_clearing_ops@nsccl.co.in for queries
Important Dates
- November 28, 2025: Circular issued
- December 04, 2025:
- All HINDUNILVR monthly F&O contracts expire (forced early expiry)
- Final settlement date
- Position reports and additional reports (F_CA_PS03, F_CA_PS04) available
- Trade date for netting with Capital Market obligations
- December 05, 2025:
- Final MTM settlement pay in/pay out (T+1)
- Physical settlement in Capital Market segment
- Settlement number 2025231
Impact Assessment
High Impact on Market Participants:
- All traders and investors holding HINDUNILVR F&O positions must either close positions before December 04, 2025 or prepare for compulsory physical settlement
- Long futures/call option holders will receive shares and must arrange funds
- Short futures/put option holders must arrange shares for delivery
- Positions that would normally expire in later months are being forced to expire early
- Physical settlement mechanism may create additional liquidity requirements and operational challenges
- Direct close-out of delivery shortages may result in penalties or forced buy-ins
- Capital Market segment will see increased activity due to physical settlement obligations
Operational Impact:
- Members need to prepare settlement infrastructure for physical delivery
- Risk management systems must account for early expiry
- Client communication regarding forced settlement is critical
- Additional reporting and reconciliation requirements with new report formats
Impact Justification
Mandatory early expiry and physical settlement of all HINDUNILVR F&O contracts impacts all market participants holding positions, requiring immediate action and settlement preparation.