Description
NSE announces adjustment of futures and options contracts in ITC Limited due to dividend of Rs 6.50 per share, effective from February 4, 2026.
Summary
NSE has announced the adjustment of Futures and Options contracts in ITC Limited due to a dividend declaration of Rs 6.50 per share (face value Re 1). The adjustments will be effective from the ex-date of February 4, 2026. All option strike prices will be revised downward by Rs 6.50 to reflect the dividend payout. Members are required to load updated contract and spread files before trading on the ex-date.
Key Points
- Company: ITC LIMITED (Symbol: ITC)
- Corporate Action: Dividend payment
- Dividend Amount: Rs 6.50 per share
- Face Value: Re 1
- Ex-Date and Effective Date: February 4, 2026
- All option strike prices revised downward by Rs 6.50
- 24 strike prices listed in Annexure 1 for February 24, 2026 expiry (e.g., 250.00 revised to 243.50, 255.00 to 248.50, etc.)
- Revised strike prices and lot sizes will appear in decimal places and be rounded to nearest tick size
- Members must load updated contract.gz/MII contract and spread files from faoftp/faocommon directory
Regulatory Changes
This circular implements SEBI guidelines for adjustments to futures and options contracts on announcement of corporate actions, specifically for dividend payments.
Compliance Requirements
- Members must load updated NSE_FO_contract_ddmmyyyy.csv.gz and NSE_FO_spdcontract_ddmmyyyy.csv.gz files on trading applications before trading on February 4, 2026
- Files available from Extranet server directory faoftp/faocommon
- MII contract and spread files also available on NSE website at https://www.nseindia.com/all-reports-derivatives
- Adjustment details can be referred at https://www.nseindia.com/products-services/equity-derivatives-corporate-actions-adjustments
- Position adjustment methodology to be separately intimated by respective Clearing Corporation
Important Dates
- Circular Date: February 3, 2026
- Ex-Date/Effective Date: February 4, 2026
- Option Expiry Date (for listed strikes): February 24, 2026
Impact Assessment
This is a routine corporate action adjustment that affects all open futures and options positions in ITC. Traders and market participants holding ITC derivative contracts need to be aware of the revised strike prices and ensure their trading systems are updated with the new contract specifications. The adjustment maintains fair pricing in the derivatives market by accounting for the dividend payout, preventing arbitrage opportunities. Members failing to load updated files may face operational issues or incorrect pricing on the ex-date.
Impact Justification
Routine dividend adjustment affecting F&O contracts in ITC, requiring traders to load updated contract files before trading on ex-date