NATIONAL STOCK EXCHANGE OF INDIA LIMITED

FUTURES & OPTIONS SEGMENT

CIRCULAR

 

Circular No. NSE/F&O/099/2008                                                          September 24, 2008

Download No: NSE/FAOP/11357

 

Dear Members,

 

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

 

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:

 

Aia Engineering Limited has informed the Exchange that the Board of Directors of the Company has fixed October 18, 2008 as the Record Date for the purpose of Sub-division / Stock Split of Equity Shares of Face Value of Rs. 10 each of the Company into the face value of Rs. 2 each.

 

Symbol                        : AIAENG

Stock split ratio           : 10:2

Ex-date                       : October 13, 2008

Record Date                : October 20, 2008

 

Adjustment factor:

 

Adjustment factor for Split of shares of A:B is defined as A/B. In the case of AIAENG 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 1000.

 


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 1000

 

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 13, 2008

 

Members are advised to load the following files in the NEATFO software before trading on October 13, 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 October 10, 2008.

 

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

Mr. Sachin Dhar and Mr. Janardhan Gujaran 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

AIAENG

25-SEP-2008

1110

CA

200

OPTSTK

AIAENG

25-SEP-2008

1110

PA

200

OPTSTK

AIAENG

25-SEP-2008

1140

CA

200

OPTSTK

AIAENG

25-SEP-2008

1140

PA

200

 

Options contracts after adjustment:

           

Instrument

Symbol

Expiry date

Strike

Type

Market Lot

OPTSTK

AIAENG

25-SEP-2008

222

CA

1000

OPTSTK

AIAENG

25-SEP-2008

222

PA

1000

OPTSTK

AIAENG

25-SEP-2008

228

CA

1000

OPTSTK

AIAENG

25-SEP-2008

228

PA

1000

 

Futures contract before adjustment:

 

Instrument

Symbol

Expiry date

Futures Base Price**

Market Lot

FUTSTK

AIAENG

25-SEP-2008

1518.75

200

 

Futures contract after adjustment:

 

Instrument

Symbol

Expiry date

Futures Base Price**

Market Lot

FUTSTK

AIAENG

25-SEP-2008

303.75

1000

 

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