Description
NSE announces adjustment procedures for F&O contracts in NUVAMA due to face value split from Rs.10 to Rs.2 per share, with adjustment factor of 5, effective December 26, 2025.
Summary
NSE Clearing Limited has announced the adjustment procedure for Futures and Options contracts in NUVAMA WEALTH MANAGEMENT LIMITED following a face value split from Rs.10 per share to Rs.2 per share. The adjustment factor is 5, and the ex-date for the corporate action is December 26, 2025. All open F&O positions existing after end of day on December 24, 2025 will be adjusted according to specified procedures.
Key Points
- Adjustment factor: 5 (reflecting 5:1 stock split)
- Ex-date: December 26, 2025
- Contracts expiring on December 24, 2025 will not be adjusted
- All open positions after December 24, 2025 will be adjusted
- Futures positions: Contract quantities multiplied by adjusted market lot
- Futures prices: Settlement price on December 24, 2025 divided by adjustment factor
- Options strike prices: Old strike price divided by 5
- Options positions: Multiplied by adjustment factor
- Mark-to-market settlement on December 24, 2025 based on daily settlement price
- Adjusted positions carried forward at adjusted value from December 26, 2025
Regulatory Changes
This circular implements provisions under:
- NSCCL Byelaws pertaining to Clearing and Settlement
- SEBI circular SMDRP/DC/CIR-8/01 dated June 21, 2001
- NSE Circular no. 043 (NCL/CMPT/67750) dated April 29, 2025
- NSE Circular no. 210/2025 (NSE/FAOP/71741) dated December 10, 2025
Compliance Requirements
For Futures Contracts:
- Clearing members must note adjusted positions calculated by multiplying pre-adjusted contracts by adjusted market lot
- Adjusted futures price based on settlement price of December 24, 2025 divided by 5
- Carry forward value computed using pre-adjusted quantity multiplied by pre-adjusted settlement price to avoid rounding differences
- Begin of day margins on December 26, 2025 computed based on adjusted carry forward value
For Options Contracts:
- Strike prices adjusted by dividing old strike price by 5
- Options positions adjusted by multiplying by adjustment factor
- All adjustments apply to open positions as of December 24, 2025
Example Adjustment (Futures):
- Pre-adjustment: 75 long contracts in December 2025 expiry becomes 375 long contracts
- Pre-adjustment: 100 short contracts in January 2026 expiry becomes 500 short contracts
Important Dates
- December 11, 2025: Circular issued
- December 24, 2025: Last trading day before adjustment; positions marked-to-market at settlement price
- December 26, 2025: Ex-date for corporate action; adjusted positions become effective
- Contracts expiring December 24, 2025: Not subject to adjustment
Impact Assessment
High Impact on:
- All participants holding open F&O positions in NUVAMA after December 24, 2025
- Position sizes will be multiplied by 5 for both futures and options
- Strike prices for options will be divided by 5
- Margin requirements will be recalculated based on adjusted positions
Operational Impact:
- Risk management systems must account for 5x increase in contract quantities
- Options traders need to track new adjusted strike prices
- Settlement and margin calculations adjusted from December 26, 2025
- Intra-day margins computed based on traded prices after adjustment
Market Continuity:
- Normal mark-to-market and margin procedures resume from December 26, 2025
- Adjusted carry forward values ensure no artificial P&L impact from adjustment
- Trading continues seamlessly with new contract specifications post-adjustment
Impact Justification
Mandatory adjustment of all open F&O positions in NUVAMA with 5x adjustment factor affecting contract quantities, strike prices, and settlement procedures for all market participants