Oracle Monetary Companies Software program (OFSS) (₹8,693.50) introduced an interim dividend of ₹265 final week. The face worth per fairness share is ₹5. The dividend will result in obligatory changes within the futures and choices (F&O) contracts on this inventory on the file date.
The corporate has determined Could 8 because the file/efficient date. On at the present time, the inventory value and all derivatives contracts on OFSS shall be adjusted appropriately.
With respect to adjustment in futures contracts, the reference price of the related contract on Could 7 shall be thought-about. Reference price would be the mark-to-market settlement value of the related futures contract. So, the open positions shall be carried ahead to Could 8 on the each day settlement value on Could 7 minus ₹265, the dividend quantity.
Suppose the closest expiry futures (Could contract) closes at ₹8,700 on Could 7. Will probably be revised to ₹8,435 (₹8,700 much less ₹265). Therefore, the contract worth will come down.
Likewise, in choices, all of the strike costs within the possibility chain of OFSS shall be subtracted by ₹265 from Could 7. For instance, the strike value of 8,700 and eight,800 shall be modified to eight,435 and eight,535 respectively.
That mentioned, the measures usually are not more likely to impression the general development of this inventory. So, merchants can follow their views and are solely required to notice the adjustments within the contracts that they maintain.
Printed on Could 3, 2025
