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    FnO Contract-Adj MothersonSumi

    Uploaded by

    Rajesh Kumar Subramani
    1) Motherson Sumi Systems Limited announced a bonus share issue of 1 new share for every 2 existing shares, subject to shareholder approval. 2) The National Stock Exchange of India will apply an adjustment factor of 1.5 to option and futures contracts on MOTHERSUMI to account for the bonus issue. 3) The adjustment will reduce option strike prices and futures prices by a factor of 1.5, and increase the market lot size by the same factor, effective July 23, 2015.

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    FnO Contract-Adj MothersonSumi

    Uploaded by

    Rajesh Kumar Subramani
    77 views3 pages
    1) Motherson Sumi Systems Limited announced a bonus share issue of 1 new share for every 2 existing shares, subject to shareholder approval. 2) The National Stock Exchange of India will apply an adjustment factor of 1.5 to option and futures contracts on MOTHERSUMI to account for the bonus issue. 3) The adjustment will reduce option strike prices and futures prices by a factor of 1.5, and increase the market lot size by the same factor, effective July 23, 2015.

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    1) Motherson Sumi Systems Limited announced a bonus share issue of 1 new share for every 2 existing shares, subject to shareholder approval. 2) The National Stock Exchange of India will apply an adjustment factor of 1.5 to option and futures contracts on MOTHERSUMI to account for the bonus issue. 3) The adjustment will reduce option strike prices and futures prices by a factor of 1.5, and increase the market lot size by the same factor, effective July 23, 2015.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    77 views3 pages

    FnO Contract-Adj MothersonSumi

    Uploaded by

    Rajesh Kumar Subramani
    1) Motherson Sumi Systems Limited announced a bonus share issue of 1 new share for every 2 existing shares, subject to shareholder approval. 2) The National Stock Exchange of India will apply an adjustment factor of 1.5 to option and futures contracts on MOTHERSUMI to account for the bonus issue. 3) The adjustment will reduce option strike prices and futures prices by a factor of 1.5, and increase the market lot size by the same factor, effective July 23, 2015.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    NATIONAL STOCK EXCHANGE OF INDIA LIMITED

    DEPARTMENT : FUTURES & OPTIONS


    Download Ref No : NSE/FAOP/30261

    Date : July 17, 2015

    Circular Ref. No : 064/2015

    All Members,
    Adjustment of Futures and Options contracts in the security MOTHERSUMI
    In pursuance of SEBI guidelines for adjustments to futures and options contracts on announcement
    of corporate action, the members are informed of the following:
    Motherson Sumi Systems Limited has informed the Exchange that the Board of Directors of the
    Company at their meeting held on June 10, 2015 have recommended the issue of Bonus Shares in
    the ratio of 1 (one) Bonus Shares against the 2 (two) existing shares subject to the approval of the
    shareholders. The Company has informed the Exchange that The Register of Members and Share
    Transfer Books of the Company shall remain closed on July 25, 2015 (single day) for the purpose
    of Annual General Meeting, payment of Dividend and issuance of Bonus Shares.
    Symbol
    Bonus issue ratio
    Ex-Date

    : MOTHERSUMI
    : 1:2
    : July 23, 2015

    Adjustment factor:
    Adjustment factor for Bonus issue of A: B is defined as (A+B)/B. In the case of MOTHERSUMI,
    the adjustment factor is (1+2)/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 750.
    Adjustments for Futures Contracts:
    1. Futures price: The adjusted futures price shall be arrived at by dividing the old futures 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 750.

    Regd. Office : Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400 051

    Page 1 of 3

    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 July 23, 2015.
    Members are advised to load the updated contract.gz file in the trading application before trading
    on July 23, 2015. This file can be obtained from the directory faoftp/faocommon on the Extranet
    server.
    The details of the revised option strike prices, futures prices, lot size and quantity freeze limit will
    be informed to members separately on July 22, 2015.

    For and on behalf of


    National Stock Exchange of India Limited

    Khushal Shah
    Chief Manager

    Toll Free No
    1800-22-00-53

    Fax No
    +91-22-26598449

    Email id
    fotrade@nse.co.in

    Regd. Office : Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400 051

    Page 2 of 3

    Annexure-1

    Option contracts before adjustment:

    OPTSTK

    MOTHERSUMI

    30-JUL-2015

    420

    CE

    Market
    Lot
    500

    OPTSTK

    MOTHERSUMI

    30-JUL-2015

    420

    PE

    500

    OPTSTK
    OPTSTK

    MOTHERSUMI
    MOTHERSUMI

    30-JUL-2015
    30-JUL-2015

    480
    480

    CE
    PE

    500
    500

    Instrument

    Symbol

    Expiry date

    Strike Type

    Options contracts after adjustment:


    Instrument

    Symbol

    Expiry date

    Strike

    Type

    OPTSTK
    OPTSTK
    OPTSTK
    OPTSTK

    MOTHERSUMI
    MOTHERSUMI
    MOTHERSUMI
    MOTHERSUMI

    30-JUL-2015
    30-JUL-2015
    30-JUL-2015
    30-JUL-2015

    280
    280
    320
    320

    CE
    PE
    CE
    PE

    Market
    Lot
    750
    750
    750
    750

    Futures contract before adjustment:


    Instrument

    Symbol

    Expiry date

    FUTSTK

    MOTHERSUMI

    30-JUL-2015

    Futures Base
    Price
    522.05

    Market Lot
    500

    Futures contract after adjustment:


    Instrument

    Symbol

    Expiry date

    FUTSTK

    MOTHERSUMI

    30-JUL-2015

    Futures Base
    Price#
    348.05

    Market Lot
    750

    If the revised strike/futures prices and the lot size on account of adjustment appear in decimal
    places, the strike/futures prices shall be rounded off to the nearest tick size and the lot size shall be
    rounded off to the nearest integer.
    # The figure is only an indicative value for the purpose of example.

    Regd. Office : Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400 051

    Page 3 of 3

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