Crime Today News
Oracle Financial Services Software (OFSS) (₹8,693.50) announced an interim dividend of ₹265 last week. The face value per equity share is ₹5. The dividend will lead to necessary adjustments in the futures and options (F&O) contracts on this stock on the record date.
The company has decided May 8 as the record/effective date. On this day, the stock price and all derivatives contracts on OFSS will be adjusted appropriately.
With respect to adjustment in futures contracts, the reference rate of the relevant contract on May 7 will be considered. Reference rate will be the mark-to-market settlement price of the relevant futures contract. So, the open positions shall be carried forward to May 8 at the daily settlement price on May 7 minus ₹265, the dividend amount.
Suppose the nearest expiry futures (May contract) closes at ₹8,700 on May 7. It will be revised to ₹8,435 (₹8,700 less ₹265). Hence, the contract value will come down.
Likewise, in options, all the strike prices in the option chain of OFSS will be subtracted by ₹265 from May 7. For example, the strike price of 8,700 and 8,800 will be modified to 8,435 and 8,535 respectively.
That said, the measures are not likely to impact the overall trend of this stock. So, traders can stick to their views and are only required to note the changes in the contracts that they hold.
Published on May 3, 2025
This article first appeared on The Hindu Business Line
📰 Crime Today News is proudly sponsored by DRYFRUIT & CO – A Brand by eFabby Global LLC
Design & Developed by Yes Mom Hosting
