As per the circular dated May 17, 2025, the National Stock Exchange of India (NSE) has announced changes in Aditya Birla Fashion and Retail Limited’s (ABFRL) Equity and Derivative contracts due to a Scheme of Arrangement (Demerger).

Details of the Corporate Action:

ABFRL has announced a Scheme of Arrangement (Demerger), and the ex-date and effective date for the same is May 22, 2025.

Key Adjustments in Derivative Contracts:

• All existing derivative contracts expiring on May 29, 2025, June 26, 2025, and July 31, 2025 will now expire on May 21, 2025.

• New derivatives contracts on ABFRL will be introduced from May 22, 2025 with the same expiries.

• The range of option strikes available for trading on May 22, 2025, will be based on the price discovered during the Special Pre-Open Session (SPOS) of the Capital Market segment on the ex-date and will be announced a day prior.

• The methodology of settlement will be communicated separately by the respective Clearing Corporations.

Key Information in Capital Market Segment:

• A Special Pre-Open Session (SPOS) will be conducted for ABFRL on May 22, 2025, from 9:00 AM to 10:00 AM.

• Orders unmatched within the dynamic price band will be carried forward to the normal trading session.

• If no equilibrium price is discovered, trading will continue in call auction mode until price discovery.

• ABFRL will be eligible for trading in the second session of the block deal window on May 22, 2025, subject to successful price discovery.

• The base price post-discovery will be the price determined during SPOS.

RMS Action and Timelines:

• Delivery margins apply to ITM buy positions. Ensure sufficient funds/holdings to avoid necessary actions by the RMS team.

• For F&O short positions, maintaining the total contract value (Long position) or equivalent holdings (Short position) is required to avoid square-off.

• Intraday trading will be blocked starting May 20, 2025.

For more details, refer to our physical settlement policy.

Additional Updates:

• Margin pledge haircut for ABFRL will be 50% on May 20 and 100% on May 21, 2025.

• ABFRL will be in square-off mode on May 20 and May 21, 2025, and recovery action will be taken on debit balances.

• MTF positions on ABFRL will be unpledged on EOD, May 20, 2025.

Note: Clients are advised to manage their positions accordingly. For further details, refer to this circular for FNO.