This News came in today that=
NESTLE INDIA: CO FIXES JAN 5, 2024 AS RECORD DATE FOR PURPOSE OF SPLIT/SUB-DIVISION
So What is the impact on Nestle India Jan Futures given the Record Date is 5th Jan 2024?
Say I have an existing Futures Position will I have to square it off before the Record Date or is the Split automatically adjusted in the Futures Price and Lot Size, that I need not bother to do anything and continue to hold the position?
Hi @T_Harth
In most of the cases involving stock split, the futures and option prices are adjusted according to the adjustment factor so there won’t be any compulsion to square off the position.
Lot size and futures price will be adjusted accordingly on the ex-date. These adjustments ensure that the value of market participants’ positions remains as close as possible to the original value on the ex-date of the corporate action.
Exchange shares circular for specific adjustments during corporate actions. You can keep the track of the same from the doc mentioned in the below article and our bulletin
Also, here’s recent example of HAL: Adjustments in F&O contracts of HAL on account of stock split