Thursday, 14 August 2014

Adjustment of Futures and Options contracts in the security HAVELLS INDIA LTD in Derivative Segment of the Exchange

In pursuance of SEBI guidelines for adjustment of Futures & Options Contracts on announcement of corporate action, the members of the Equity Derivatives Segment are hereby informed the following:
HAVELLS INDIA LTD (Scrip Code: 517354) has informed BSE that the Company has fixed August 27, 2014 as the Record Date for the purpose of sub-division of existing Equity Shares from every 1 (One) Equity Share of Rs. 5/- each into 5 (Five) Equity Shares of Re. 1/- each.
In view of the above and in compliance with the aforementioned SEBI guidelines, the Exchange shall make the necessary adjustments for all the available Futures & Options contracts on the underlying scrip HAVELLS INDIA LTD (Derivatives Asset Code - HAIL), on Monday, August 25, 2014 end of day, the ‘ex-date’ beingTuesday, August 26, 2014.
The adjustments to be made on account of stock split are given below:
A) Adjustment Factor:
If the ratio of Stock Split is say A:B, the adjustment factor is defined as A/B. The stock split ratio of HAVELLS INDIA LTD is 5:1. Therefore, the adjustment factor for stock split in this case would be 5/1 = 5.
B) Adjustments for Futures and Options Contracts:
Strike Price: The adjusted strike price will be arrived at by dividing the old strike price by the adjustment factor (5).The revised strike prices on account of adjustment would be as per the  below example:


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