Description
Adjustment of F&O contracts for Indian Oil Corporation Limited due to Rs 5/- dividend with ex-date December 18, 2025. Strike prices reduced by dividend amount across all option contracts.
Summary
NSE has announced adjustments to Futures and Options contracts in Indian Oil Corporation Limited (IOC) due to a dividend declaration. The company will pay a dividend of Rs 5/- per share (face value Rs 10/-) with ex-date and effective date of December 18, 2025. All option strike prices will be reduced by Rs 5/- to reflect the dividend payment. Members must load updated contract and spread files before trading on the ex-date.
Key Points
- Dividend amount: Rs 5/- per share on face value of Rs 10/-
- Ex-date and effective date: December 18, 2025
- All option strike prices reduced by Rs 5/- (e.g., 140 becomes 135, 150 becomes 145)
- 66 option strike prices listed in Annexure 1 for December 30, 2025 expiry
- Revised prices will appear in decimal places and be rounded to nearest tick size
- Lot sizes will be rounded to nearest integer
- Updated contract.gz and spread files must be loaded before trading on ex-date
Regulatory Changes
No new regulatory changes. This circular implements existing SEBI guidelines for adjustments to futures and options contracts on announcement of corporate actions, specifically dividend payments.
Compliance Requirements
- Members must load updated contract files (NSE_FO_contract_ddmmyyyy.csv.gz) before trading on December 18, 2025
- Members must load updated spread files (NSE_FO_spdcontract_ddmmyyyy.csv.gz) from faoftp/faocommon directory on Extranet server
- Files also available on NSE website at: https://www.nseindia.com/all-reports-derivatives
- Members must refer to adjustment details at: https://www.nseindia.com/products-services/equity-derivatives-corporate-actions-adjustments
- Position adjustment methodology will be separately communicated by respective Clearing Corporation
Important Dates
- December 17, 2025: Circular issue date
- December 18, 2025: Ex-date and effective date for dividend adjustment
- December 30, 2025: Expiry date for adjusted option contracts listed in annexure
Impact Assessment
Market Impact: Medium impact on IOC derivatives market. All existing option positions will be adjusted with strike prices reduced by Rs 5/-. This affects 66+ strike prices across multiple expiries.
Operational Impact: Trading members must ensure systems are updated with new contract specifications before market opening on December 18, 2025. Failure to load updated files could result in trading disruptions or pricing errors.
Trader Impact: Open positions in IOC F&O contracts will be automatically adjusted. Traders should verify adjusted positions and strikes post ex-date. The Rs 5/- dividend represents approximately 3% of current strike levels (e.g., 5/150 = 3.3%), making this a material adjustment for option strategies and hedging positions.
Impact Justification
Standard dividend adjustment affecting F&O contracts for major PSU stock. Material impact on derivatives traders holding IOC positions requiring position adjustments and updated contract files.