Adjustment of Futures and Options Contracts in BHARAT PETROLEUM CORPORATION LIMITED (BPCL)

Description

NSE Clearing announces adjustment of F&O contracts in BPCL due to dividend payout of Rs. 10/- per share, effective February 01-02, 2026.

Summary

NSE Clearing Limited has issued instructions for adjustment of Futures and Options contracts in BHARAT PETROLEUM CORPORATION LIMITED (BPCL) pursuant to NSE Circular No. 12/2026. The adjustment is necessitated by a dividend payout of Rs. 10/- per share. All futures contracts will be marked-to-market on February 01, 2026 (last cum-dividend date) and adjusted by reducing the dividend amount from the settlement price. Strike prices for all option contracts will be reduced by Rs. 10/- and adjusted to the nearest tick size on the ex-dividend date.

Key Points

• Dividend amount: Rs. 10/- per share
• Last cum-dividend date: February 01, 2026
• Ex-dividend date: February 02, 2026
• Futures contracts: Reference rate reduced by Rs. 10/- (e.g., Rs. 370.00 adjusted to Rs. 360.00)
• Options contracts: All strike prices reduced by Rs. 10/- and adjusted to nearest tick size
• All existing positions in old strike prices will continue in corresponding new adjusted strike prices
• From February 02, 2026, daily mark-to-market settlement will continue as per normal procedures
• Begin of day margins on February 02, 2026 will be computed based on adjusted carry forward value

Regulatory Changes

This circular implements the standard procedure for corporate action adjustments in derivative contracts as per NSE regulations. The adjustment ensures fair treatment of all market participants holding F&O positions during the dividend record date.

Compliance Requirements

• Clearing Members: Must ensure proper adjustment of all client positions in BPCL futures and options
• Trading Members: Need to update position values and communicate adjustments to clients
• Market Participants: All holders of BPCL F&O contracts must note the adjusted values for margin calculations
• Risk Management: Intra-day margins will be computed based on relevant traded prices post-adjustment
• Settlement: All positions marked-to-market on February 01, 2026 based on daily settlement price, then carried forward at adjusted price (settlement price minus Rs. 10/-)

Important Dates

• January 28, 2026: Circular issued
• February 01, 2026: Last cum-dividend date - futures contracts marked-to-market and adjusted
• February 02, 2026: Ex-dividend date - normal trading and settlement resumes with adjusted prices; begin of day margins computed on adjusted values

Impact Assessment

Market Impact: High - affects all outstanding BPCL futures and options positions across February, March, and April expiries. Traders holding long futures positions will see their position values reduced by Rs. 10/- per share multiplied by lot size.

Operational Impact: Clearing members must process adjustments for all client positions. Example provided shows positions of 1975 units being revalued from Rs. 7,30,750 to Rs. 7,11,000 (reduction of Rs. 19,750).

Options Impact: All strike prices shift downward by Rs. 10/-, requiring position tracking at new strike levels (e.g., 370 CE becomes 360 CE, 375 PE becomes 365 PE, 380 PE becomes 370 PE).

Risk Management Impact: Margin calculations will be based on adjusted prices from February 02, 2026 onwards, potentially affecting margin requirements for existing positions.

Impact Justification

Mandatory adjustment affecting all F&O positions in BPCL requiring immediate action by clearing members and traders for dividend payout of Rs. 10/-