13 May 2020, 08:50 AM

Adjustment of Futures and Options contracts of Reliance

With reference to this NSE circular, Reliance has undergone a rights issue today. Reliance Industries Limited (RELIANCE) has informed the Exchange that Board of Directors at its meeting held on April 30, 2020, has decided to issue equity shares on rights basis in the ratio of 1:15, i.e. 1 Equity Share for every 15 Equity Shares held at an issue price of Rs. 1257 per equity share. Further, the company has fixed Record Date as May 14, 2020 for the purpose of determining the shareholders who will be eligible to apply for the Issue. Symbol: RELIANCE Rights ratio: 01:15 Ex-date: May 13, 2020

Adjustments for Options Contracts:

  1. Strike Price: The adjusted strike price shall be arrived at by multiplying the old strike price by the adjustment factor.
  2. Market Lot: The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 505.
Consequently, all AMOs for Reliance options were cancelled.

Adjustments for Futures Contracts:

  1. Futures price: The adjusted Futures base price shall be arrived at by multiplying the old Futures base price by the adjustment factor.
  2. Market Lot: The adjusted market lot shall be arrived at by dividing the old market lot by the adjustment factor. The revised market lot would be 505. The above changes shall be effective from May 13, 2020.