NATIONAL STOCK EXCHANGE OF INDIA LIMITED

FUTURES & OPTIONS SEGMENT

CIRCULAR

Circular No. NSE/F&O/091/2008 September 8, 2008

Download No: NSE/FAOP/11251

Dear Members,

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

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

Corporate action :

Larsen & Toubro Limited has informed the Exchange that at the Annual General Meeting of the Company held on August 29, 2008, Members approved the issue of Bonus shares in the ratio of 1:1 (i.e. one bonus share for every one share held). Accordingly October 03, 2008 has been fixed as the Record date in order to determine the Members entitled to receive the aforesaid Bonus Shares.

Symbol: LT

Bonus issue ratio: 1:1

Record Date : October 3, 2008

Ex-date: October 1, 2008

Adjustment factor :

Adjustment factor for Bonus issue of A:B is defined as (A+B)/B. In the case of LT, the adjustment factor is 2/1 = 2, since the bonus issue ratio is 1:1.

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 100.

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 100.

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 October 1, 2008.

Members are requested to load the following files in the NEATFO software before trading on October 1, 2008.

1.      Security.gz

2.      Contract.gz

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

The details of the revised option strike prices will be informed to members through a circular separately on September 30, 2008.

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

Ms. Shalini Rebeiro and Mr. Sachin Dhar at 022-26598151 and 022-26598152.

For and on behalf of

National Stock Exchange of India Limited

Suprabhat Lala

Assistant Vice President

Annexure-1

Option contracts before adjustment:

Instrument	Symbol	Expiry date	Strike	Type	Market Lot
OPTSTK	LT	29-OCT-08	2400	CA	50
OPTSTK	LT	29-OCT-08	2550	PA	50
OPTSTK	LT	29-OCT-08	2600	CA	50
OPTSTK	LT	29-OCT-08	2700	PA	50

Options contracts after adjustment:

Instrument	Symbol	Expiry date	Strike	Type	Market Lot
OPTSTK	LT	29-OCT-08	1200	CA	100
OPTSTK	LT	29-OCT-08	1275	PA	100
OPTSTK	LT	29-OCT-08	1300	CA	100
OPTSTK	LT	29-OCT-08	1350	PA	100

Futures contract before adjustment:

Instrument	Symbol	Expiry date	Market Lot	Futures Price*
FUTSTK	LT	29-OCT-08	50	2688.70

Futures contract after adjustment:

Instrument	Symbol	Expiry date	Market Lot	Futures Price*
FUTSTK	LT	29-OCT-08	100	1344.35

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