Description
NSE announces dividend adjustment of Rs 6.50 per share for ITC Limited F&O contracts with ex-date February 4, 2026. Revised strike prices and contract specifications to be updated.
Summary
NSE has announced the adjustment of Futures and Options contracts in ITC Limited due to a dividend payment of Rs 6.50 per share (face value Re 1). The ex-date and effective date is February 4, 2026. Revised option strike prices will be provided one day prior to the ex-date. Members must load updated contract files before trading on the ex-date.
Key Points
- Company: ITC LIMITED
- Corporate Action: Dividend
- Dividend Amount: Rs 6.50 per share
- Face Value: Re 1
- Ex-date and Effective Date: February 4, 2026
- Revised option strike prices to be published one day before ex-date
- Strike prices and lot sizes may appear in decimal places and will be rounded to nearest tick size/integer
- Position adjustment methodology to be intimated separately by Clearing Corporation
Regulatory Changes
No new regulatory changes. This circular implements existing SEBI guidelines for adjustments to futures and options contracts on announcement of corporate actions.
Compliance Requirements
- Members must download and load updated contract.gz/MII contract files (NSE_FO_contract_ddmmyyyy.csv.gz) on trading applications before trading on February 4, 2026
- Members must load updated spread files (NSE_FO_spdcontract_ddmmyyyy.csv.gz) before ex-date
- Files available from faoftp/faocommon directory on Extranet server
- MII contract and spread files also available on NSE website at https://www.nseindia.com/all-reports-derivatives
- Adjustment details can be referenced at https://www.nseindia.com/products-services/equity-derivatives-corporate-actions-adjustments
Important Dates
- January 30, 2026: Circular issued
- February 3, 2026: Revised option strike prices, futures prices, lot size and quantity freeze limits to be made available (one day prior to ex-date)
- February 4, 2026: Ex-date and effective date for dividend adjustment
Impact Assessment
Trading Impact: All open F&O positions in ITC will be adjusted for the Rs 6.50 dividend. Strike prices and contract specifications will be modified, requiring traders to update their systems and recalibrate trading strategies.
Operational Impact: Members must ensure their trading systems are updated with new contract files before February 4, 2026 to avoid trading disruptions. Failure to update may result in incorrect pricing and position calculations.
Market Impact: Medium - ITC is a heavily traded security in the derivatives segment. The adjustment affects all outstanding futures and options contracts, requiring market participants to adjust their positions and hedging strategies accordingly.
Impact Justification
Routine dividend adjustment affecting F&O contracts for a major stock. Requires member action to update contract files before ex-date.