Announcement for adjustment in derivative contracts post dividend announcement: SEBI

The Securities Exchange Board of India has released a notification relating to adjustment rules for dividends in Futures and Options (F&O) scrips.

The circular stated, “It has been decided that the adjustment in derivative contracts shall be carried out in cases where dividends declared are at or above 2 per cent of the market value of an underlying stock,”

According to the new framework, the threshold has been reduced from the earlier 5 per cent and above to 2 per cent and above. This shall be applicable from 29.06.2022.