Advustment in Derivative Contracts for Dividend Announcement

Basis the representations received from various stakeholders requesting to review the framework for adjustment in derivative contracts for dividend announcements. 

The Secondary Market Advisory Committee (SMAC) of SEBI has decided that the “adjustment in derivative contracts shall be carried out in cases where dividends declared are at or above 2% of the market value of underlying stock”.

The revised threshold would be applicable for dividend announcements done on or after the effective date of the circular i.e. June 29, 2022.

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