NATIONAL STOCK EXCHANGE OF INDIA LIMITED

FUTURES & OPTIONS SEGMENT

CIRCULAR

 

Circular No. NSE/F&O/076/2008                                                                     July 18, 2008

Download No: NSE/FAOP/11005    

 

Dear Members,

 

Subject: Adjustment of Futures and Options contracts in the security INDIAINFO

 

In pursuance of SEBI guidelines for adjustments to futures and options contracts on announcement of corporate action of split of shares, the members are informed of the following:

 

Corporate action:

 

India Infoline Limited has informed the Exchange that the record date for the purpose of sub-division/stock split of 1 equity share of Rs.10/- each into the 5 equity shares of Rs.2/- each is fixed as August 18, 2008.

 

Symbol                        : INDIAINFO

Stock split ratio           : 10:2

Ex-date                       : August 08, 2008

Record Date                : August 18, 2008

 

Adjustment factor:

 

Adjustment factor for Split of shares of A:B is defined as A/B. In the case of INDIAINFO the adjustment factor is 10/2 = 5, since the split ratio is 10:2.

 

Adjustments for Options Contracts:

 

1.   Strike Price: The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor.

2.   Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1250.

 


Adjustments for Futures Contracts:

 

1.   Futures Base Price: The adjusted Futures Base Price shall be arrived at by dividing the old Futures Base Price by the adjustment factor.

2.   Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1250.

 

An example of the adjustments described above is given in Annexure 1.

 

The methodology for position adjustments shall be separately intimated by NSCCL.

 

The above changes shall be effective from August 08, 2008

 

Members are advised to load the following files in the NEATFO software before trading on August 08, 2008

 

1.      Security.gz

2.      Contract.gz

 

These files can be obtained from the directory faoftp/faocommon in the Extranet server.

 

The details of the revised option strike prices will be informed to members through a circular separately on August 07, 2008.

 

For any clarifications, members are advised to contact the following officials:

Mr Altaf Shaikh,Mr. Sachin Dhar and Mr. Arvind Goyal at 022-26598151 and 022-26598152.

 

 

 

For and on behalf of

National Stock Exchange of India Limited

 

 

 

 

Suprabhat Lala

Asst. Vice President


 

Annexure-1

Option contracts before adjustment:

 

Instrument

Symbol

Expiry date

Strike

Type

Market Lot

OPTSTK

INDIAINFO

28-AUG-2008

700

CA

250

OPTSTK

INDIAINFO

28-AUG-2008

700

PA

250

OPTSTK

INDIAINFO

28-AUG-2008

720

CA

250

OPTSTK

INDIAINFO

28-AUG-2008

720

PA

250

 

Options contracts after adjustment:

           

Instrument

Symbol

Expiry date

Strike

Type

Market Lot

OPTSTK

INDIAINFO

28-AUG-2008

140

CA

1250

OPTSTK

INDIAINFO

28-AUG-2008

140

PA

1250

OPTSTK

INDIAINFO

28-AUG-2008

144

CA

1250

OPTSTK

INDIAINFO

28-AUG-2008

144

PA

1250

 

Futures contract before adjustment:

 

Instrument

Symbol

Expiry date

Futures Base Price**

Market Lot

FUTSTK

INDIAINFO

28-AUG-2008

592.95

250

 

Futures contract after adjustment:

 

Instrument

Symbol

Expiry date

Futures Base Price**

Market Lot

FUTSTK

INDIAINFO

28-AUG-2008

118.60

1250

 

**The price is only an indicative value for the purpose of example.