Adjustment of Futures and Options contracts in the Security OIL (India) Limited (OIL)
This is pursuant to NSE Circular no. 07/2020 (Download no. 43509) dated February
12, 2020 regarding Adjustment of Futures and Options contracts in the security OIL.
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 OIL shall be carried out based on the
reference rate of the relevant futures contracts on February 19, 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 OIL would
be marked-to-market on the last cum-dividend date i.e. February 19, 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. 9 (dividend amount) for the respective futures contract.
From February 20, 2020 (ex-dividend date), daily mark to the market settlement of futures
contracts with the underlying security as OIL would continue as per normal procedures
Begin of day margins on February 20, 2020, would be computed for the futures
contract with underlying as OIL 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
Exclusion of Futures and Options contracts on OIL
This is in reference with SEBI Circular Ref. No: SEBI/HO/MRD/DP/CIR/P/2018/67 dated April 11, 2018, regarding Review of Framework for Stocks in Derivatives Segment which states that after a period of one year from the date of the circular, only those stocks which meet the enhanced eligibility criteria shall remain in derivatives segment.
Accordingly, members are requested to note that the contracts for new expiry months in the
following securities will not be issued on expiry of existing contract months:
Symbol OIL
Name of Company OIL INDIA LIMITED
However, the existing unexpired contracts of expiry months February 2020, March 2020 and April 2020 would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months.
Accordingly, no contracts shall be available for trading in the above-mentioned security with effect from May 04, 2020.
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