Description

NSE Clearing announces adjustment methodology for NMDC F&O contracts following dividend payment, with strike price and futures contract adjustments effective February 13, 2026.

Summary

NSE Clearing Limited has issued guidelines for the adjustment of Futures and Options contracts in NMDC LIMITED (NMDC) following a dividend payment. A dividend amount of Rs. 2.50 per share will be adjusted in all futures and options contracts. The adjustment will be based on the reference rate available on February 12, 2026 (last cum-dividend date), with adjusted positions becoming effective from February 13, 2026 (ex-dividend date).

Key Points

  • Dividend amount of Rs. 2.50 per share to be adjusted in NMDC F&O contracts
  • Last cum-dividend date: February 12, 2026
  • Ex-dividend date: February 13, 2026
  • Futures contracts will be adjusted by reducing the settlement price by Rs. 2.50
  • Options strike prices will be reduced by Rs. 2.50 and adjusted to nearest tick size
  • All existing positions will continue in corresponding new adjusted strike prices
  • Margins will be computed based on adjusted carry forward values from February 13, 2026

Regulatory Changes

No new regulatory framework changes. This circular implements standard corporate action adjustment procedures for dividend payments in derivatives contracts as per existing NSE guidelines.

Compliance Requirements

For Clearing Members:

  • Ensure system readiness for adjusted contract values and strike prices
  • Update position records with adjusted futures prices (daily settlement price less Rs. 2.50)
  • Update options positions with new strike prices (existing strike minus Rs. 2.50, adjusted to nearest tick)
  • Verify margin calculations based on adjusted carry forward values

For Trading Members:

  • Communicate adjustments to clients holding NMDC F&O positions
  • Ensure client systems reflect adjusted contract specifications

Settlement Processing:

  • Positions marked-to-market on February 12, 2026 based on daily settlement price
  • Open positions carried forward at adjusted price from February 13, 2026
  • Normal mark-to-market procedures resume from ex-dividend date

Important Dates

  • February 10, 2026: Circular issued
  • February 12, 2026: Last cum-dividend date; positions marked-to-market at unadjusted prices
  • February 13, 2026: Ex-dividend date; adjusted prices become effective, normal MTM resumes with adjusted values

Impact Assessment

Market Impact:

  • All NMDC futures and options positions across expiry months (February, March, April 2026 and beyond) will be adjusted
  • Futures contract values will decrease by Rs. 2.50 per share
  • Options strike prices will shift downward by Rs. 2.50, rounded to nearest tick size

Operational Impact:

  • Automatic adjustment process; no action required from position holders
  • Example: Futures valued at Rs. 84.00 will adjust to Rs. 81.50
  • Example: Call option at strike 83.00 will adjust to 80.50; Put option at strike 84.00 will adjust to 81.50
  • Position quantities remain unchanged; only pricing adjustments occur
  • Margin requirements will be recalculated based on adjusted values

Risk Management:

  • Begin-of-day margins on February 13, 2026 based on adjusted carry forward values
  • Intra-day margins computed on actual traded prices post-adjustment
  • No disruption to trading or settlement processes expected

Impact Justification

Standard corporate action adjustment for F&O contracts due to dividend payment affecting all NMDC derivatives positions