Adjustment of Futures & Options Contracts for RELIANCE

RELIANCE Industries Limited has announced a bonus issue of 1:1. This means the shareholders will receive 1 additional share for every share they own. The record date for this adjustment is 28 October 2024.

Due to this corporate action, please note the following impacts on your F&O contracts:
1. Contract Adjustments: All existing RELIANCE F&O contracts will be adjusted based on a bonus adjustment factor of 2

2. Futures Contracts:
– The adjusted base price will be calculated by dividing the settlement price one day before the ex-date by the adjustment factor
– The new lot size will be 500 (previously 250)
– For example: If RELIANCE OCT Futures close at ₹3000 on 25 October 2024, the adjusted price on the ex-date will be ₹1500 (calculated as ₹3000 divided by 2). To keep the overall contract value the same, the new lot size will be 500 shares.

3. Options Contracts:
– The adjusted strike price will be calculated by dividing the old strike price by the adjustment factor
– The new lot size will also be 500 (previously 250).

4. Bonus Shares: If you hold RELIANCE shares in your DEMAT account as of 28 October 2024, you will receive bonus shares. These will be credited to your account within 15–20 days from the record date.

5. Margin Pledge: Until you get your bonus shares, the value of your margin pledge might drop because the stock price has changed. This could result in a margin shortage, so make sure to take care of any shortfalls.

You can also refer to the circular here

Thank you for your attention!