Adjustment of F&O contracts of ITC due to dividend

Core Viewpoint - The adjustment of ITC's futures and options contracts is due to extraordinary dividends, impacting strike prices and settlement procedures starting February 04, 2026 [1]. Adjustment for Futures Contracts - All positions in ITC futures contracts will be marked-to-market on the last cum-dividend date, February 03, 2026, based on the daily settlement price [2] - Open positions will be carried forward at the daily settlement price less ₹6.50, the dividend amount, for the respective futures contract [2] - Daily mark-to-market settlement of futures contracts will continue as per normal procedures from February 04, 2026 [3] Example of Futures Contracts Adjustment - If 1 lot (1600 quantities) of ITC February futures is bought at ₹323 on February 03, 2026, and the daily settlement price is ₹326, a mark-to-market profit of ₹3 per share is realized [4] - On February 04, 2026, the position will be carried forward at ₹319.50, and if the closing price is ₹322, a mark-to-market profit of ₹2.50 per share will be achieved [4] Adjustment for Options Contracts - The full value of the dividend, ₹6.50, will be deducted from all cum-dividend strike prices on the ex-dividend date [5] - Existing positions in strike prices will continue to exist in the corresponding new adjusted strike prices [5] Example of Options Contracts Adjustment - The strike price of the ₹325 Call Option will be reduced to ₹318.50 on February 04, 2026, with positions continuing in the ₹318.50 Call Option [6] - The lot size of the F&O contracts will remain unchanged [6] - Holders of ITC equity shares in their Demat account as of February 04, 2026, will be entitled to receive the dividend, credited to their primary bank account within 30 to 45 days from the record date [6]