NSE Circular No: NSE/F&O/044/2009 (08-Jun-09) Adjustment of Futures and Options contracts in the security TATA CONSULTANCY SERVICES LTD (TCS)

Download No: NSE/FAOP/ 12545

In pursuance of SEBI guidelines for adjustments to futures and options contracts on announcement of corporate action the members are informed of the following:

Corporate action:

Tata Consultancy Services Ltd has informed the Exchange that the Record Date for the purpose of issue of Bonus shares in the Ratio of 1:1 (one bonus share of the Company of Re.1/- each for every one equity share of the Company held by the Shareholders of the Company) as approved by the shareholders at their Board Meeting held on April 20, 2009 is fixed as June 17, 2009.

Symbol : TCS

Bonus issue ratio : 1:1

Ex-date : June 16, 2009

Record Date : June 17, 2009

Adjustment factor:

Adjustment factor for Bonus issue of A: B is defined as (A+B)/B. In the case of TCS, the adjustment factor is 2/1 =2 since the bonus issue ratio is 1:1.

Adjustments for Options Contracts:

  1. Strike Price: The adjusted strike price shall be arrived at by dividing the old strike price by the adjustment factor.

  2. Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1000.


    Adjustments for Futures Contracts:

  3. Futures Base Price: The adjusted Futures Base Price shall be arrived at by dividing the old Futures Base Price by the adjustment factor.

  4. Market Lot: The adjusted market lot shall be arrived at by multiplying the old market lot by the adjustment factor. The revised market lot would be 1000.

    The above changes shall be effective from June 16, 2009.

    An example of the adjustments described above is given in Annexure 1.

    The methodology for position adjustments shall be separately intimated by NSCCL.

    Members are requested to load the following files in the NEATFO software before trading on June 16, 2009.

  5. Security.gz

  6. Contract.gz

    These files can be obtained from the directory faoftp/faocommon on the Extranet server.

    The details of the revised option strike prices will be informed to members through a circular separately on June 15, 2009.

    For any clarifications, members are advised to contact the following officials:

    Mr. Dipesh Sahoo,Ms. Prakriti Dabral,Mr. Anandha Padmanabhan at 022-26598151 and 022-26598152.

    For and on behalf of

    National Stock Exchange of India Limited

    Suprabhat Lala

    Assistant Vice President


    ANNEXURE I

    Option contracts before adjustment:

    Instrument Symbol Expiry date Strike Type Market Lot
    OPTSTK TCS 2
    ...

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