Adjustment of Futures and Options contracts in the security GAIL (India) Limited (GAIL)
This is pursuant to NSE Circular no. 04/2020 (Download no. 43505) dated February
11, 2020 regarding Adjustment of Futures and Options contracts in the security GAIL.
The following action with regards to clearing and settlement would be taken by NSE
Clearing in this regard.
Action by the Clearing Corporation in respect of Futures Contracts
Adjustment of futures contracts available in GAIL shall be carried out based on the
reference rate of the relevant futures contracts on February 14, 2020 (last cum dividend date).
The reference rate to be reckoned for the purpose of adjustment shall be the daily mark to the market settlement price of the relevant futures contract, which shall be reduced by the dividend amount.
Accordingly, all positions in futures contracts with the underlying security as GAIL
would be marked-to-market on the last cum-dividend date i.e. February 14, 2020,
based on the daily settlement price of the respective futures contract.
Subsequent to such processing, open positions shall be carried forward at the daily settlement price fewer Rs. 6.40 (dividend amount) for the respective futures contract.
From February 17, 2020 (ex-dividend date), daily mark to the market settlement of futures
contracts with the underlying security as GAIL would continue as per normal procedures
Begin of day margins on February 17, 2020, would be computed for the futures
contract with underlying as GAIL based on the adjusted carry forward value.
Subsequently, intra-day margins would be computed based on the relevant traded
prices at the time the intra-day span risk parameter files are generated.
Adjustment of Futures and Options contracts in the security GAIL
In pursuance of SEBI Master circular, no SEBI/HO/MRD/DP/CIR/P/2016/135 dated December 16, 2016, and SEBI circular no. CIR/MRD/DoP-1/P/00108/2018 dated July 5, 2018;GAIL (INDIA) LIMITED has informed the Exchange that Board of Directors at its meeting held on February 10, 2020, has declared Interim Dividend of Rs 6.40 per equity share. The record date for the purpose of payment of the dividend is February 18, 2020.
Symbol: GAIL
Corporate Action: Interim dividend of Rs. 6.40 per share
Ex-date: February 17, 2020
Adjustments for Futures Contracts:
The base price of the Futures contracts on February 17, 2020, will be reference rate less aggregate amount of dividend i.e. Rs. 6.40/-. The reference rate to be reckoned for this purpose shall be the daily mark to the market settlement price of the relevant futures contract.
Adjustments for Options Contracts:
The full value of dividend i.e. Rs. 6.40/- would be deducted from all the cum-dividend strike prices on the ex-dividend date. The details of the old and corresponding new options contracts that shall be available for trading from February 17, 2020, would be notified on February 14, 2020.
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