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22 Mar 2024, 11:00 AM
Adjustment of F&O contracts of PERSISTENT on account of Split
As per the circular(web), effective from March 28th, 2024(ex-date), the PERSISTENT F&O contracts will be revised based on the split adjustment factor.
Calculation of the adjustment factor: The adjustment factor for the split issue of A:B is defined as (A/B). In the case of PERSISTENT, the adjustment factor is (2/1) = 2 since the split issue ratio is 2:1.
Adjustment for Futures Contracts:
Futures base price: The adjusted futures base price will be arrived at by dividing the settlement price of the future one day before the ex-date by the adjustment factor.
Futures lot size: The adjusted market lot will be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 200.
For example: Assume you are holding a position in PERSISTENT Futures, and on pre-ex-date (March 27th, 2024), futures close at 8000, on ex-date the price will be adjusted to 4000 (Price on pre-ex-date: 8000 / Adjustment Factor: 2), while the lot size will be adjusted to 200 (Current lot size: 100 * Adjustment Factor: 2).
Adjustment for Options Contracts:
Strike Price: The adjusted strike price will be arrived at by dividing the old strike price by the adjustment factor.
Lot Size: The adjusted lot size will be arrived at by multiplying the old market lot by the adjustment factor. The revised lot size would be 200.
For example: Assume you hold a position in PERSISTENT 9000 CE, the current lot size is 100. On ex-date, the 9000 CE will be adjusted to 4500 CE(Strike Price: 9000 / Adjustment Factor: 2) and the lot size will be adjusted to 200 (Current Lot Size: 100 * Adjustment Factor: 2).
Also, if you hold equity shares of PERSISTENT in your demat account as of March 28th, 2024(ex-date) you will be entitled to receive the split shares, which will be credited to your demat account usually within a week from the ex-date.