Description

NSE Clearing Limited announces adjustment of PNB futures and options contracts due to dividend of Rs. 3/- per share, effective June 11-12, 2026.

Summary

NSE Clearing Limited (NCL) has announced adjustments to Futures and Options (F&O) contracts on Punjab National Bank (PNB) in response to a declared dividend of Rs. 3/- per share. This circular (Ref No: 55/2026) follows NSE Circular No. 61/2026 dated May 12, 2026. All open PNB futures positions will be marked-to-market on the last cum-dividend date (June 11, 2026) with settlement prices reduced by the dividend amount, and all PNB options strike prices will be adjusted downward by Rs. 3/- on the ex-dividend date (June 12, 2026).

Key Points

  • Dividend amount triggering adjustment: Rs. 3/- per share
  • Last cum-dividend date: June 11, 2026
  • Ex-dividend date: June 12, 2026
  • All open PNB futures positions will be marked-to-market on June 11, 2026 at the daily settlement price reduced by Rs. 3/-
  • From June 12, 2026, normal mark-to-market settlement procedures resume
  • Begin-of-day margins on June 12, 2026 will be computed on the adjusted carry-forward value
  • Intra-day margins from June 12 onward will be based on relevant traded prices at the time of intra-day SPAN risk parameter file generation
  • All options strike prices will be reduced by Rs. 3/- and adjusted to the nearest tick size on the ex-dividend date
  • Example adjustment: futures priced at Rs. 102.00 will carry forward at Rs. 99.00; call option strike of 102.00 becomes 99.00; put option strike of 103.00 becomes 100.00

Regulatory Changes

This adjustment is a standard dividend-driven contract modification under NSE Clearing’s F&O framework. It supersedes or supplements NSE Circular No. 61/2026 (Download No. NSE/FAOP/74177) dated May 12, 2026, providing specific clearing and settlement mechanics for the PNB dividend adjustment.

Compliance Requirements

  • All clearing members and trading members must note the revised carry-forward prices for PNB futures contracts from June 12, 2026
  • Members must ensure clients are informed of the strike price changes in PNB options contracts effective June 12, 2026
  • Position files for trade date adjustments (as referenced in the circular) must be reviewed to reconcile futures and options positions post-adjustment
  • Members should update risk and margin systems to reflect the adjusted settlement prices for begin-of-day margin computation on June 12, 2026

Important Dates

  • May 12, 2026: Original NSE Circular No. 61/2026 issued regarding PNB F&O adjustment
  • May 13, 2026: This circular (NCL/CMPT/74184, Ref 55/2026) issued with specific clearing/settlement details
  • June 11, 2026: Last cum-dividend date — PNB futures marked-to-market; positions carried forward at settlement price minus Rs. 3/-
  • June 12, 2026: Ex-dividend date — normal futures settlement resumes; options strike prices adjusted downward by Rs. 3/-; begin-of-day margins computed on adjusted carry-forward values

Impact Assessment

This adjustment has a high operational impact on all market participants holding open positions in PNB futures and options contracts. The Rs. 3/- dividend deduction lowers futures carry-forward prices (e.g., from Rs. 102 to Rs. 99) and reduces options strike prices by the same amount, affecting P&L calculations, margin requirements, and hedging strategies. Members with large open interest in PNB F&O contracts — particularly those expiring June 30, 2026 and July 28, 2026 — must recalibrate their risk models. The adjustment is mechanical and mandatory, with no discretion available to members; failure to account for adjusted prices may result in margin shortfalls or incorrect position valuations.

Impact Justification

Directly affects all open PNB futures and options positions held by market participants; requires mandatory contract and strike price adjustments due to dividend, with specific settlement price changes on June 11-12, 2026.