Corporate-action adjustments on F&O contracts

Sun, 21 Jun 2026 00:00:00 +0000

A corporate-action adjustment on a futures and options (F&O) contract is the mechanical revision that NSE Clearing Limited, the clearing corporation of the National Stock Exchange and a SEBI-regulated entity, applies to the strike price, the futures base price and the market lot of every open derivatives contract on a stock when the underlying company carries out a stock split, bonus issue, extraordinary dividend, rights issue, merger or demerger. The adjustment is value-neutral by design: it changes the contract’s numbers so that the rupee value of every open position is identical the moment before and the moment after, with no forced closure of any position.

Bonus Issue F&O on WebNotes

Corporate-action adjustments on F&O contracts