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Indian Oil Corporation has fixed July 28 as the record date for the purpose of final dividend for the year 2022-23. A dividend of ₹3 was declared on July 13. Consequently, the stock price will be adjusted on the record date and eventually there will be adjustments in futures and options (F&O) contracts on this stock.
While the actual modifications in the contracts will be known one day prior to the effective date, the adjustment will most likely be up to the magnitude of the dividend amount — ₹3.
The futures price will be adjusted based on the settlement price on July 27; on July 28, the futures price will be deducted by ₹3 from the settlement price on July 27. For example, if the settlement price is ₹100, after adjustment the futures price will be ₹97.
Similarly, all the strike prices of the options contract will be revised down ₹3. For example, the strike price of 100 will be adjusted to 97, strike price of 99 will be adjusted to ₹96 and so on from July 28.
In another development last week, the NSE has withdrawn the exclusion of F&O contracts of Container Corporation of India (CONCOR). In a circular dated July 14, the NSE had announced that the derivative contracts of CONCOR will be excluded from the equity F&O segment after September expiry, as the company came under the IBC proceedings. It has now been withdrawn since the same has been stayed. Thus, CONCOR F&O contracts will continue to be available as it stands.
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