Description
NSE Clearing adjusts F&O contracts for GAIL following dividend distribution of Rs. 5/- per share, with adjustments effective from February 05, 2026.
Summary
NSE Clearing Limited has issued adjustments for Futures and Options contracts in GAIL (INDIA) LIMITED following a dividend distribution. The adjustment involves reducing futures contract prices and options strike prices by Rs. 5/- (dividend amount) effective from the ex-dividend date of February 05, 2026.
Key Points
- Adjustment based on NSE Circular No. 15/2026 dated February 01, 2026
- Dividend amount: Rs. 5/- per share
- Last cum-dividend date: February 04, 2026
- Ex-dividend date: February 05, 2026
- Futures contracts: Reference rate reduced by Rs. 5/-
- Options contracts: All strike prices reduced by Rs. 5/- and adjusted to nearest tick size
- All existing positions automatically carried forward to adjusted prices/strikes
Regulatory Changes
No new regulatory framework introduced. This is a standard corporate action adjustment procedure for dividend distribution in derivative contracts.
Compliance Requirements
- All clearing members must note the adjusted positions in their systems
- Futures positions will be marked-to-market on February 04, 2026 at daily settlement price
- Positions carry forward at settlement price minus Rs. 5/- dividend amount
- Options positions migrate from existing strikes to new adjusted strikes automatically
- Begin-of-day margins on February 05, 2026 computed based on adjusted carry forward values
Important Dates
- February 01, 2026: Original NSE circular issued (NSE/FAOP/72559)
- February 02, 2026: NCL clearing circular issued
- February 04, 2026: Last cum-dividend date; mark-to-market adjustment applied
- February 05, 2026: Ex-dividend date; trading continues with adjusted prices
Impact Assessment
Market Impact: High - affects all open F&O positions in GAIL across all expiries (February, March, April 2026 contracts mentioned in examples).
Operational Impact: Clearing members and trading members must ensure systems reflect adjusted positions. Futures valued at Rs. 162/- pre-adjustment will be carried forward at Rs. 157/-. Options strike prices adjusted downward by Rs. 5/- (e.g., 162 CE becomes 157 CE, 163 PE becomes 158 PE, 164 PE becomes 159 PE).
Risk Management: Margin calculations reset based on adjusted values from February 05, 2026. Intra-day margins computed on traded prices post-adjustment.
Impact Justification
Critical operational circular affecting all F&O positions in GAIL with specific adjustments to futures prices and options strike prices due to dividend payment.