Notice Board

As per the circular dated June 10, 2024, issued by the National Stock Exchange (NSE), there will be adjustments to the Futures and Options (F&O) contracts of Canara Bank (CANBK) due to the extraordinary dividend. These adjustments will take effect from June 14, 2024.

Details of Adjustments:

Particulars

Futures Contracts

Options Contracts

Adjustment

Positions will be marked-to-market on the last cum-dividend date, June 13, 2024.
Open positions carried forward at the daily settlement price less ₹3.22.
From June 14, 2024, daily mark-to-market settlement continues as normal.

₹3.22 deducted from all cum-dividend strike prices on the ex-dividend date.
Positions in existing strike prices continue at new adjusted strike prices.

Example

For instance, if you bought 1 lot (6750 quantities) of CANBK futures on June 13, 2024, at ₹150, and the daily settlement price at market close is ₹155, you would have made a mark-to-market profit of ₹5 per share.

On June 14, 2024, the position will be carried forward at ₹151.78 (155 - 3.22). If the closing price on June 14, 2024, is ₹157, you’ll make a mark-to-market profit of ₹5.22 per share.

For instance, if the option strike price is set at ₹100 CE/PE and a dividend of ₹3.22 is paid, the adjusted option strike price after the dividend payment would be ₹96.78 CE/PE (100 - 3.22).

Important Points:

The lot size of the F&O contracts will remain unchanged.
If you hold equity shares of CANBK in your Demat account as of June 14, 2024 (ex-date), you will receive the dividend directly in your bank account within 30-45 days.

For more details, please refer to the NSE Circular.

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