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15 May 2025, 11:40 AM
Adjustment of F&O contracts of BSE on account of bonus.
As per the circular, effective from May 23, 2025, the BSE F&O contracts will be revised based on the bonus adjustment factor.
Calculation of the adjustment factor: The adjustment factor for a bonus issue of A: B is defined as (A+B)/B. For BSE Limited, the adjustment factor is (2+1)/1 = 3, since the bonus issue ratio is 2:1.
Adjustment for Futures Contracts:
Futures base price: The adjusted futures base price is 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 375.
For example:
Assume you are holding a position in BSE MAY FUT and on pre-ex-date (May 22, 2025), futures close at 7200, on ex-date the price will be adjusted to 2400 (Price on pre-ex-date: 7200 / Adjustment Factor: 3)
While the lot size will be adjusted to 375 (Current lot size: 125 * Adjustment Factor: 3).
Adjustment for Options Contracts:
Strike Price: The adjusted strike price is calculated by dividing the old strike price by the adjustment factor.
Lot Size: The adjusted lot size is arrived at by multiplying the old market lot by the adjustment factor. The revised lot size would be 375.
For example:
Assume you hold a position in BSE 6900 CE, the current lot size is 125. On ex-date, the 6900 CE will be adjusted to 2300 (Strike Price 6900 / Adjustment Factor 3) and the lot size will be adjusted to 375 (Current Lot Size: 125 * Adjustment Factor 3).
Also, if you hold equity shares of BSE in your demat account as of May 23, 2025, you will be entitled to receive the bonus shares, which will be credited to your demat account usually within 2 days from the record date.