13 May 2026, 12:23 PM

Adjustment of F&O contracts of PNB due to dividend

As per the NSE circular, June 12, 2026, the strikes of PNB options and the base price of the futures contracts will be revised due to extraordinary dividends.

Adjustment for future contracts:

All positions in futures contracts of PNB will be marked-to-market on the last cum-dividend date, i.e. June 11, 2026, based on the daily settlement price of the respective futures contract. Subsequently, open positions will be carried forward at the daily settlement price less ₹3 (dividend amount) for the respective futures contract.

From June 12, 2026 (ex-dividend date), daily mark-to-market settlement of the futures contracts will continue as per normal procedures.

For example:

Assume you bought 1 lot (8000 quantities) of PNB June futures on June 11, 2026, at ₹105, and the daily settlement price at market close is ₹108, you would have made a mark-to-market profit of ₹3 per share.

On June 12, 2026, the previous day’s position will be carried forward at ₹105 (i.e. 108 − 3). If the closing price on June 12, 2026, is ₹107, you’ll make a mark-to-market profit of ₹2 per share.

Adjustment for option contracts:

The full value of the dividend, i.e. ₹3, will be deducted from all the cum-dividend strike prices on the ex-dividend date. All positions in existing strike prices will continue to exist in the corresponding new adjusted strike prices.

For example:

The strike price of the ₹105 Call Option will be reduced to ₹102 on June 12, 2026, and the positions in the ₹105 Call Option will continue to exist in the ₹102 Call Option.

The lot size of the F&O contracts will not change.

Also, if you hold equity shares of PNB in your Demat account as of June 12, 2026 (ex-date), you will be entitled to receive the dividend, which will be credited directly to your primary bank account within 30 to 45 days from the record date.