NATIONAL STOCK EXCHANGE OF INDIA LIMITED

FUTURES & OPTIONS SEGMENT

CIRCULAR

 

 

Circular No: NSE/F&O/107/2008                                                              October 3, 2008

Download No: NSE/FAOP/11427

 

Dear Members,

 

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

 

 

In pursuance of SEBI guidelines for adjustments to futures and options contracts on announcement of corporate action and in continuation to circular no NSE/F&O/095/2008 dated September 11, 2008, the members are informed of the following:

 

Corporate action:

 

Gail (India) Limited has informed the Exchange regarding a press release dated September 04, 2008, titled "GAIL shareholders approve 1 bonus share issue for 2 equity shares; Authorized capital to be doubled to Rs. 2000 crore; GAIL to enhance petrochemical capacity at its Pata plant; Company on path to achieve Rs. 50,000 crore revenue by 2011-12; Enhancing the transmission / distribution capability, Petrochemicals and City Gas / CNG activities to be focus areas for future growth; GAIL Training Institute to become Profit Centre". Gail (India) Limited has further informed the Exchange that for issuance of one bonus share for two equity shares held, the 'Record Date', has been fixed for October 07, 2008. The proposal has also been approved by the Shareholders in their meeting held on September 04, 2008.

 

Symbol                        :           GAIL

Bonus issue ratio         :           1:2

Ex-date                       :           October 06, 2008

Record Date                :           October 07, 2008

 

Adjustment factor:

 

Adjustment factor for Bonus issue of A:B is defined as (A+B)/B. In the case of GAIL, the adjustment factor is 3/2 = 1.5, since the bonus issue ratio is 1:2.

 

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 1125.

 

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 1125.

 

 

The methodology for position adjustments has been separately intimated by NSCCL.

 

The above changes shall be effective from October 6, 2008.

 

Members are requested to load the following files in the NEATFO software before trading on October 6, 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 available for trading in the security GAIL on October 6, 2008 is given in Annexure I.

 

 

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

 

Sr. No.

Instrument

Symbol

Expiry

Existing strike price

Revised strike price

1

OPTSTK

GAIL

29-Oct-08

350.00

233.35

2

OPTSTK

GAIL

29-Oct-08

360.00

240.00

3

OPTSTK

GAIL

29-Oct-08

370.00

246.65

4

OPTSTK

GAIL

29-Oct-08

380.00

253.35

5

OPTSTK

GAIL

29-Oct-08

390.00

260.00

6

OPTSTK

GAIL

29-Oct-08

400.00

266.65

7

OPTSTK

GAIL

29-Oct-08

410.00

273.35

8

OPTSTK

GAIL

29-Oct-08

420.00

280.00

9

OPTSTK

GAIL

29-Oct-08

430.00

286.65

10

OPTSTK

GAIL

29-Oct-08

440.00

293.35

11

OPTSTK

GAIL

29-Oct-08

450.00

300.00

12

OPTSTK

GAIL

29-Oct-08

460.00

306.65

13

OPTSTK

GAIL

27-Nov-08

360.00

240.00

14

OPTSTK

GAIL

27-Nov-08

370.00

246.65

15

OPTSTK

GAIL

27-Nov-08

380.00

253.35

16

OPTSTK

GAIL

27-Nov-08

390.00

260.00

17

OPTSTK

GAIL

27-Nov-08

400.00

266.65

18

OPTSTK

GAIL

27-Nov-08

410.00

273.35

19

OPTSTK

GAIL

27-Nov-08

420.00

280.00

20

OPTSTK

GAIL

27-Nov-08

430.00

286.65

21

OPTSTK

GAIL

27-Nov-08

440.00

293.35

22

OPTSTK

GAIL

27-Nov-08

450.00

300.00

23

OPTSTK

GAIL

27-Nov-08

460.00

306.65

24

OPTSTK

GAIL

25-Dec-08

360.00

240.00

25

OPTSTK

GAIL

25-Dec-08

370.00

246.65

26

OPTSTK

GAIL

25-Dec-08

380.00

253.35

27

OPTSTK

GAIL

25-Dec-08

390.00

260.00

28

OPTSTK

GAIL

25-Dec-08

400.00

266.65

29

OPTSTK

GAIL

25-Dec-08

410.00

273.35

30

OPTSTK

GAIL

25-Dec-08

420.00

280.00

31

OPTSTK

GAIL

25-Dec-08

430.00

286.65

32

OPTSTK

GAIL

25-Dec-08

440.00

293.35

33

OPTSTK

GAIL

25-Dec-08

450.00

300.00