Description

NSE Clearing Limited announces adjustment of futures and options contracts for BANKINDIA due to a dividend of Rs. 4.65/-, effective from the ex-dividend date of May 29, 2026.

Summary

NSE Clearing Limited (Circular Ref. No. 57/2026) has announced the adjustment of Futures and Options contracts in BANK OF INDIA (BANKINDIA) pursuant to NSE Circular No. 64/2026 dated May 12, 2026. A dividend of Rs. 4.65/- per share will be deducted from futures settlement prices and options strike prices on the ex-dividend date of May 29, 2026.

Key Points

  • Dividend amount: Rs. 4.65/- per share
  • Last cum-dividend date: May 27, 2026
  • Ex-dividend date: May 29, 2026
  • All open futures positions in BANKINDIA will be marked-to-market on May 27, 2026, and carried forward at daily settlement price less Rs. 4.65/-
  • All options strike prices will be reduced by Rs. 4.65/- on May 29, 2026, adjusted to the nearest tick size
  • Existing positions in old strike prices will automatically migrate to the corresponding adjusted strike prices
  • Begin-of-day margins on May 29, 2026 will be computed based on adjusted carry-forward values

Regulatory Changes

Pursuant to NSE Circular No. 64/2026 (Download No. NSE/FAOP/74180) dated May 12, 2026, NSE Clearing Limited will implement contract-level adjustments to ensure fair settlement for all open derivatives positions in BANKINDIA around the dividend record date.

Compliance Requirements

  • Members must note the adjusted settlement prices and strike prices for BANKINDIA derivatives
  • No action is required from members to migrate positions; adjustments will be applied automatically by the clearing corporation
  • Members should update their risk and margining systems to reflect the adjusted carry-forward values effective May 29, 2026
  • Intraday margins from May 29, 2026 onwards will be computed based on traded prices at the time intraday span risk parameter files are generated

Important Dates

  • May 12, 2026: Original NSE Circular No. 64/2026 issued regarding BANKINDIA adjustment
  • May 13, 2026: This clearing circular (NCL/CMPT/74182) issued
  • May 27, 2026: Last cum-dividend date — futures marked-to-market; open positions carried forward at adjusted prices
  • May 29, 2026: Ex-dividend date — options strike prices reduced by Rs. 4.65/-; normal futures settlement resumes with adjusted values

Impact Assessment

Futures Contracts: All open positions in BANKINDIA futures will see their carry-forward price reduced by Rs. 4.65/-. For example, a position valued at Rs. 140.00/- will be carried forward at Rs. 135.35/-. This affects the long value of positions — e.g., 5,200 shares previously valued at Rs. 7,28,000 will be revalued at Rs. 7,03,820.

Options Contracts: All cum-dividend strike prices will be reduced by Rs. 4.65/- (adjusted to nearest tick size). For example, a CE option with strike Rs. 160.00 becomes Rs. 155.35, and a PE option with strike Rs. 170.00 becomes Rs. 165.35. All positions migrate automatically to the new strike prices.

Market Impact: This is a routine dividend-driven contract adjustment. While operationally significant for all market participants holding BANKINDIA derivatives, it does not alter the economic value of positions. Members with concentrated BANKINDIA exposure should verify margin requirements on May 29, 2026.

Impact Justification

Directly affects all open futures and options positions in BANKINDIA; traders must account for adjusted settlement prices and strike prices due to Rs. 4.65 dividend.