As per the circular dated December 29, 2024, The National Stock Exchange of India (NSE) has announced changes in ITC Equity and Derivative contracts due to a corporate action taking effect in ITC Limited.

Details of the Corporate Action:

• ITC Limited has announced the issuance and allotment of 1 equity share of ITC Hotels for every 10 equity shares of ITC Limited held by its shareholders. The Record Date for this corporate action is January 06, 2025.

Key Adjustments in Derivative Contracts:

1. All existing derivative contracts expiring on January 30, 2025, February 27, 2025, and March 27, 2025 will now expire on January 03, 2025. The settlement for these contracts will take place on January 06, 2025.

2. New derivatives contracts on ITC Limited will be introduced again with the same expiries (January 30, 2025, February 27, 2025, and March 27, 2025) starting January 06, 2025.

Key information in Capital Market Segment:

1. A Special Pre-Open Session (SPOS) will be conducted for ITC Limited on January 06, 2025, from 9:00 a.m. to 10:00 a.m.

2. Unmatched orders within the dynamic price band will transition to the normal trading session.

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

4. ITC Limited will be eligible for trading in the second session of the block deal window on January 06, 2025, subject to successful price discovery.

5. Base price post-discovery will be the discovered price during SPOS.

RMS Action and Timelines:

• The delivery margin is applicable for ITM buy positions. Failure to maintain the necessary funds/holdings will result in necessary action by the RMS team.

• For Futures and Option Short positions, maintaining the total contract value (Long position) or equivalent holdings (Short position) is required to avoid square off.

For more details, refer to our physical settlement policy.

Additional Updates:

• Margin pledge haircut for ITC will be increased to 40% from Wednesday, January 1st, 2025.
• ITC will be placed in square-off mode from Thursday BOD, January 2nd, 2025.
• The MTF positions on ITC will be unpledged on Thursday EOD, January 2nd, 2025.
• The risk team will take recovery action on debit balances on Friday morning, January 3, 2025, once the market opens.

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