Description
NSE Clearing Limited announces adjustment of TECHM futures and options contracts due to a dividend of Rs. 36/- per share, effective July 02–03, 2026. Futures prices and options strike prices will be reduced by the dividend amount on the ex-dividend date.
Summary
NSE Clearing Limited (NCL) has issued circular NCL/CMPT/74003 (Ref No. 049/2026) dated April 30, 2026, detailing the clearing and settlement actions to be taken for Futures and Options contracts on TECH MAHINDRA LIMITED (TECHM) in connection with its dividend of Rs. 36/- per share. This circular follows NSE Circular No. 53/2026 dated April 28, 2026. Adjustments apply to all open positions in TECHM derivatives across all expiries.
Key Points
- Dividend amount: Rs. 36/- per share
- Last cum-dividend date (adjustment reference date): July 02, 2026
- Ex-dividend date (effective date for adjusted prices): July 03, 2026
- All open futures positions in TECHM will be marked-to-market on July 02, 2026, and carried forward at the daily settlement price minus Rs. 36/-
- All options strike prices will be reduced by Rs. 36/- on the ex-dividend date (July 03, 2026), adjusted to the nearest tick size
- Positions in existing strike prices automatically migrate to the corresponding adjusted strike prices
- Begin-of-day margins on July 03, 2026 will be computed on adjusted carry-forward values
Regulatory Changes
This circular operationalises the contract adjustment framework under NSE Circular No. 53/2026 (Download No. NSE/FAOP/73943, dated April 28, 2026). The clearing corporation will systematically reduce:
- Futures carry-forward prices by Rs. 36/- on the cum-dividend date
- All cum-dividend options strike prices by Rs. 36/- on the ex-dividend date, rounded to the nearest tick size
Compliance Requirements
- Clearing Members: Must note the adjusted carry-forward values for TECHM futures and options positions in their risk and margin systems effective July 03, 2026
- Trading Members: Must communicate adjusted strike prices and settlement values to clients holding TECHM derivatives positions
- All Members: Must refer to Position files for trade date July 02, 2026 onward to verify adjusted position details provided by NSE Clearing
- Normal MTM settlement procedures resume from July 03, 2026
Important Dates
| Date | Event |
|---|---|
| April 28, 2026 | NSE Circular No. 53/2026 issued (reference circular) |
| April 30, 2026 | This circular (NCL/CMPT/74003) issued |
| July 02, 2026 | Last cum-dividend date; futures MTM at settlement price; carry-forward at price minus Rs. 36/- |
| July 03, 2026 | Ex-dividend date; adjusted strike prices effective; begin-of-day margins computed on adjusted values; normal MTM resumes |
| July 28, 2026 | Expiry date for the near-month contracts referenced in position examples |
Impact Assessment
Futures Contracts: All open TECHM futures positions will be revalued. Example: a position carried at Rs. 1450.00 will be adjusted to Rs. 1414.00 (Rs. 1450.00 − Rs. 36.00). Long positions receive a credit equivalent to the dividend amount, while short positions are debited — this is a neutral economic adjustment preserving fair value.
Options Contracts: Strike prices across all TECHM option series are reduced by Rs. 36/- on the ex-dividend date. Example: a 1500 CE becomes a 1464 CE; a 1600 PE becomes a 1564 PE. This adjustment is automatic — holders retain their positions in the new adjusted strikes with no action required.
Margins: Begin-of-day margins on July 03, 2026 will reflect adjusted carry-forward values. Intra-day margins will revert to normal traded-price-based computation thereafter.
Market Impact: High, as TECHM is a large-cap Nifty 50 constituent with significant derivatives open interest. All clearing and trading members with TECHM derivatives exposure must update their systems ahead of July 02, 2026.
Impact Justification
Directly affects all open futures and options positions in TECHM; requires mandatory price and strike price adjustments across all expiries due to a Rs. 36/- dividend, impacting margin calculations and settlement values for clearing members and traders.