Adjustment of Derivatives Contracts of CANBK Due to Dividend

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.