Description
NSE Clearing adjusts IOC futures and options contracts for Rs. 5/- dividend, effective December 18, 2025 (ex-dividend date). Futures positions adjusted via mark-to-market, options strike prices reduced by dividend amount.
Summary
NSE Clearing Limited has issued mandatory adjustments for all Futures and Options contracts in Indian Oil Corporation Limited (IOC) due to a dividend payment of Rs. 5/-. The adjustments will be implemented on December 18, 2025 (ex-dividend date), following mark-to-market settlement on December 17, 2025 (last cum-dividend date). Futures contracts will be adjusted by reducing settlement prices by the dividend amount, while options strike prices will be reduced by Rs. 5/- and adjusted to the nearest tick size.
Key Points
- Dividend amount: Rs. 5/- per share
- Last cum-dividend date: December 17, 2025
- Ex-dividend date: December 18, 2025
- All IOC futures positions will be marked-to-market on December 17, 2025 at daily settlement price, then carried forward at settlement price minus Rs. 5/-
- All IOC options strike prices will be reduced by Rs. 5/- and adjusted to nearest tick size
- Positions in existing strike prices will automatically transfer to corresponding new adjusted strike prices
- Begin-of-day margins on December 18, 2025 will be computed based on adjusted carry forward values
- Normal mark-to-market procedures resume from December 18, 2025
Regulatory Changes
No regulatory framework changes. This is a standard corporate action adjustment procedure pursuant to NSE Circular No. 213/2025 dated December 15, 2025.
Compliance Requirements
- Clearing members must ensure systems are updated to reflect adjusted futures prices and options strike prices
- All members must account for the dividend adjustment in position valuations and margin calculations
- No action required from members - adjustments will be processed automatically by NSE Clearing
- Members should verify adjusted positions and values post-implementation
Important Dates
- December 15, 2025: NSE issued reference circular (No. 213/2025)
- December 16, 2025: NSE Clearing circular issued
- December 17, 2025: Last cum-dividend date; futures contracts marked-to-market at daily settlement price before adjustment
- December 18, 2025: Ex-dividend date; adjusted prices and strike prices become effective; normal trading resumes with adjusted values
Impact Assessment
Market Impact: High - affects all market participants holding IOC futures or options positions across all expiry months (December 2025, January 2026, February 2026, and subsequent months).
Pricing Impact: Futures will trade at approximately Rs. 5/- lower levels post-adjustment. Options strike prices will shift down by Rs. 5/- (e.g., 168.00 CE becomes 163.00 CE, 169.00 PE becomes 164.00 PE).
Operational Impact: Automatic adjustment by clearing corporation minimizes operational burden, but members must ensure:
- Risk management systems reflect adjusted prices
- Margin calculations incorporate adjusted carry forward values
- Client reporting accurately reflects adjusted positions
- Hedging strategies account for the price discontinuity
Examples Provided:
- Futures: Position valued at Rs. 170.00 will be adjusted to Rs. 165.00 (Rs. 170.00 - Rs. 5.00)
- Options: Strike price 168.00 CE becomes 163.00 CE, 169.00 PE becomes 164.00 PE, 170.00 PE becomes 165.00 PE
Trading Continuity: No disruption expected; normal trading continues with adjusted contract parameters from ex-dividend date.
Impact Justification
Mandatory adjustments to all IOC futures and options contracts affecting pricing, settlement, and margin calculations for all market participants with positions in IOC derivatives