Adjustment of F&O contracts of GAIL due to dividend

Core Viewpoint - The adjustment of GAIL's futures and options contracts is due to extraordinary dividends, impacting strike prices and settlement procedures starting February 5, 2026 [1]. Adjustment for Futures Contracts - All futures positions will be marked-to-market on the last cum-dividend date, February 4, 2026, based on the daily settlement price [2]. - Open positions will be carried forward at the daily settlement price minus ₹5, reflecting the dividend amount [2]. - Normal daily mark-to-market settlement will resume on February 5, 2026, the ex-dividend date [2]. Example of Futures Contracts - If 1 lot (3150 quantities) of GAIL February futures is bought at ₹162 on February 4, 2026, and the daily settlement price is ₹165, a mark-to-market profit of ₹3 per share is realized [3]. - On February 5, 2026, the position will be carried forward at ₹160 (i.e., ₹165 - ₹5), and if the closing price is ₹163, a mark-to-market profit of ₹3 per share will still be achieved [3]. Adjustment for Options Contracts - The full dividend value of ₹5 will be deducted from all cum-dividend strike prices on the ex-dividend date [4]. - Existing positions in strike prices will continue in the corresponding new adjusted strike prices [4]. Example of Options Contracts - The strike price of the ₹140 Call Option will be reduced to ₹135 on February 5, 2026, with positions continuing in the ₹135 Call Option [5]. - The lot size of the F&O contracts will remain unchanged [5]. - Shareholders holding GAIL equity shares as of February 5, 2026, will receive the dividend credited to their primary bank account within 30 to 45 days from the record date [5].