Description

NSE announces adjustment of futures and options contracts for GAIL (India) Limited due to dividend of Rs 5/- per share with ex-date February 05, 2026.

Summary

NSE has announced adjustments to 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. Option strike prices will be revised downward by Rs 5/- to reflect the dividend payment. Members must load updated contract and spread files before trading on the ex-date.

Key Points

  • Company: GAIL (India) Limited
  • Corporate Action: Dividend payment
  • Dividend Amount: Rs 5/- per share
  • Face Value: Rs 10/-
  • Ex-date and Effective Date: February 05, 2026
  • All option strike prices reduced by Rs 5/-
  • Revised strike prices will appear in decimal places and be rounded to nearest tick size
  • Lot sizes will be rounded to nearest integer
  • Contract adjustments follow SEBI guidelines for corporate actions

Regulatory Changes

No new regulatory changes. This circular implements existing SEBI guidelines for adjustments to futures and options contracts upon announcement of corporate actions.

Compliance Requirements

  • Members must load updated contract files (NSE_FO_contract_ddmmyyyy.csv.gz) before trading on February 05, 2026
  • Members must load updated spread files (NSE_FO_spdcontract_ddmmyyyy.csv.gz) before trading on the ex-date
  • Files available from faoftp/faocommon directory on Extranet server
  • MII contract and spread files also available on NSE website: https://www.nseindia.com/all-reports-derivatives
  • Position adjustment methodology to be separately intimated by respective Clearing Corporation

Important Dates

  • Circular Date: February 04, 2026
  • Ex-date/Effective Date: February 05, 2026
  • Expiry Date (for adjusted contracts): February 24, 2026

Impact Assessment

Market Impact: All existing Futures and Options positions in GAIL will be adjusted to reflect the dividend payment. Option strike prices will be reduced by Rs 5/-, affecting 66+ option strike prices listed in the circular’s annexure. The adjustment ensures fair pricing post-dividend but requires traders to update their systems and understand the new strike prices.

Operational Impact: Trading members must ensure their systems are updated with new contract specifications before market opening on February 05, 2026. Failure to update could result in pricing errors or trade rejections. The adjustment follows standard procedures, minimizing operational disruption for members familiar with corporate action adjustments.

Trading Impact: Traders holding GAIL F&O positions should note that their contracts will be automatically adjusted. Open interest will be transferred to adjusted strikes. The strike price range from 136-167 (old) becomes 131-162 (revised) for February 24, 2026 expiry contracts.

Impact Justification

Routine corporate action adjustment affecting F&O contracts for a major stock. Impacts all traders holding GAIL derivatives positions but follows standard adjustment procedures.