Description

Adjustment of F&O contracts in GAIL (INDIA) LIMITED for dividend of Rs 5/- per share with ex-date on February 05, 2026.

Summary

NSE has announced the adjustment of Futures and Options contracts in GAIL (INDIA) LIMITED due to a dividend declaration of Rs 5/- per share (face value Rs 10/-). The adjustments will be effective from the ex-date of February 05, 2026. Members must load updated contract files before trading on the ex-date.

Key Points

  • Company: GAIL (INDIA) LIMITED
  • Corporate Action Type: Dividend
  • Face Value: Rs 10/-
  • Dividend Amount: Rs 5/- per share
  • Ex-date and Effective Date: February 05, 2026
  • Revised option strike prices will be provided one day prior to the ex-date
  • Strike prices and lot sizes will appear in decimal places and be rounded to nearest tick size/integer
  • Members must load updated contract.gz/MII contract and spread files before trading on ex-date

Regulatory Changes

No new regulatory changes. This circular implements existing SEBI guidelines for adjustments to futures and options contracts following corporate action announcements.

Compliance Requirements

  • Trading members must download and load updated contract.gz/MII contract files (NSE_FO_contract_ddmmyyyy.csv.gz) and spread files (NSE_FO_spdcontract_ddmmyyyy.csv.gz) from faoftp/faocommon directory on Extranet server
  • Files must be loaded on trading applications before trading on February 05, 2026
  • Files are also available on NSE website at: https://www.nseindia.com/all-reports-derivatives
  • Position adjustment methodology will be separately communicated by the Clearing Corporation

Important Dates

  • February 01, 2026: Circular issued
  • February 04, 2026: Revised option strike prices, futures prices, lot size and quantity freeze limits to be made available (one day prior to ex-date)
  • February 05, 2026: Ex-date and effective date for dividend adjustment

Impact Assessment

Market Impact: Medium - affects all traders holding GAIL F&O positions. Dividend of Rs 5/- on face value of Rs 10/- represents a 50% dividend, which is substantial and will require significant contract adjustments.

Operational Impact: Members must ensure systems are updated with revised contract parameters before trading begins on the ex-date. Failure to update could result in trading errors or position mismatches.

Trading Impact: Option strike prices and futures base prices will be adjusted and appear in decimal places. Lot sizes will be rounded to nearest integer, potentially affecting position sizes and margin requirements.

Reference: Detailed adjustment methodology available at https://www.nseindia.com/products-services/equity-derivatives-corporate-actions-adjustments

Impact Justification

Standard dividend adjustment for F&O contracts affecting GAIL derivatives traders. Medium impact as it requires contract adjustments and updated files to be loaded before ex-date.