Announcements

National Mineral Development Corporation (NMDC) conducted a meeting with its Board of Directors on 3rd December, 2021. As per this meeting, it has declared, to the Exchange, an Interim Dividend of ₹9.01 per equity share. The ex-dividend date for the purpose of payment of dividends is 14th December 2021.

What are dividends?
A dividend is a part of the company's profits given to its shareholders to reward them for their investment in the company. 

How does this corporate action impact Futures & Options Contracts?

Impact on Futures Contract: 

• Base price of the Futures contracts on 14th December 2021 will be reference rate less aggregate amount of dividend i.e. ₹9.01
• The reference rate to be reckoned for this purpose shall be the daily mark to
  market settlement price of the relevant futures contract

Impact on Options Contract: 

The full value of dividend i.e. ₹9.01 would be deducted from all the cum-dividend strike prices on the.ex-dividend date

For all positions taken before 14th December 2021, you may see a slight deviation in the carried forward (c/f) average price of NMDC due to the corporate action mentioned above.

To know more, read the circular here.